TurboTax is deducting my self employment income with prior Passive Losses which I don't think is correct.

I have self employment income as well a Passive Loss carryover from a K-1.

TurboTax is deducting the self employment income with some of the losses of the K-1.

Self employment income is NOT passive income so the Passive Loss should not be used. How can I get this corrected?

I can remove the Passive Loss entirely, but could it be an issue if the Passive Losses are not reported with my taxes?