No, you can use this 1099-SA to permanently end the year after year carry over. Even though it has a distribution code of '1', when you enter it and state that none of the distribution is for qualified medical expenses, TurboTax will terminate the carryovers.
According to the IRS' rules (which are not obvious) there are only two ways to cure a carryover of excess contributions, once the original deadline has passed (generally the due date of the original return, or in your case, April 15, 2019. I am ignoring all the changes in due dates for Covid)
1. In a subsequent tax year, reduce HSA contributions so the the carryover can be used up in the subsequent year as a personal contribution (line 2 (8889)).
2. Make a distribution (code 1 on the 1099-SA) and label it NOT for medical expenses. This will cause the carryover amount to be added to income, AND add a 20% penalty. But also in that case, the carryover will be permanently terminated.
It appears to me that your 1099-SA is made up for #2, as it should be, if you are never going to have HDHP coverage again, and you are ready for the carryover to cease.
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