After going through the many threads on this - which hopefully means TT will address properly in 2024 - it seems the only/best way to handle this is make an adjustment on the state tax form. For VA the only option (as suggested by a TT expert for a different state in one of these threads) seems to be to make a manual adjustment under "Here's the income that Virginia handles differently" > Misc > "Other Subtractions from Federal Income" and put in the total with a description.
When buying Treasuries on secondary market for specific dates there are usually multiple Notes available with different coupons/discounts. I had purchased low coupon notes at a discount but going forward will switch to notes at par/premium if this saves a manual step on state taxes.
