Yes, the code-B Form 1099-R is reporting a distribution of unrecoverable Roth contribution basis. (I imagine that you also have a code-H 2025 Form 1099-R for the rollover of funds from the designated Roth account to a Roth IRA.)
You'll need to omit the code-B Form 1099-R. Although I have never seen IRS guidance regarding this situation, given that you rolled the account over to a Roth IRA, I think it is reasonable to include the $1,000 from box 5 to your Roth IRA contribution basis. You can include this amount when 2025 TurboTax asks for the amount of your Roth IRA contributions before 2025.
