I've seen more than a few posts on this forum that suggests that Vanguard reps aren't all trained as well as they should be.
I stand by my position that, because code G is only valid for the movement of funds to another retirement account and an HSA is not a retirement account, that Vanguard has the responsibility to correct the Form 1099-R. It's their mistake, after all. Absent that, I think it would be appropriate to submit a substitute Form 1099-R with code 1 or code 7 in place of the code G.
