"all of the distribution was for qualified medical expenses" - this question is asked in the 1099-SA subinterview in the HSA interview. That is, when you call the HSA custodian and ask for a distribution, the custodian will issue a 1099-SA which will include all distributions for the year.
Normally, the 1099-SA is received early in the subsequent year for the previous year's tax year.
An alternative is to claim that some of the expenses for 2019 that were for medical expenses were not.
Note that at this point, you should have already received a 1099-SA for tax year 2019. Go back through the HSA interview and Edit the 1099-SA that you have already entered.
Then, when you see this question, enter that not all of the expenses were for qualified medical expenses (even if they were), and enter an amount equal to this long-running carryover. This will trigger the process in your 2019 return to eliminate the long-running carryover.
TurboTax never gets to step 4 because you haven't yet revisited the 1099-SA interview to see that not all expenses were qualified dialogue.
Note that this alternative works for 2019 (the first thing I mentioned works for tax year 2020), but it assumes that you have 1099-SA for tax year 2019 that is at least as large as the long-running excess. If you don't have such a 1099-SA for 2019, then you will have to do the 4 steps I outlined above for tax year 2020, that is, ask for the distribution now and report it on your 2020 return.
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