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Get your taxes done using TurboTax
I think you are on to something..
that screen you reference with the AZ question is where TT asks questions that effect state returns (my questions on that screen are specific to the state I live in). TT is determining that the pension is from AZ and since you already stated you are a AZ resident, TT knows to deduct $2500 that is available for AZ residents for AZ pension payments.
My next screen asks whether the distribution is from a qualified plan. The question of RMD does not appear. (my box 7 is 'normal')
However, if Box 7 is '4-death' (which for another family member under a separate return who is the surviving spouse of a pensioner), that RMD question indeed appears after the state specific screen.
anyway, reporting bugs:
https://ttlc.intuit.com/questions/4512589-how-to-i-report-bugs