Yes, this is incorrect. Since you filed using the standard deduction in 2019 and 2020, you do not have to report the income from the 1099-G.
TurboTax is picking up the that you filed using the standard deduction for 2020 because that was the last year filed. TurboTax cannot determine whether or not it is income for 2019 since 2019 is not linked to the 2021 return.
I suggest removing the 1099-G for 2019 from your return.
