I know this is years later but I stumbled on this thread and figured it out for my problem in 2025, so I'm just leaving this here in case it helps anybody else like me in the future, since it took me HOURS to figure it out (and Intuit provides literally zero technical support).
The automatic import of my W-2 filled in the city locality as "DTRT" which TurboTax does not recognize. I had to edit the W-2 in TurboTax and replace "DTRT" with "Detroit", which then calculated the withholding correctly.
