I see, you needed to pick the "sister" option even though your dependent is your sister-in-law. The problem is an "other" dependent does not normally qualify for head of household (HOH) filing status, so that is why the program does not allow you HOH filing status when you select the "other" status.
If you look at the screen in TurboTax that say Who Do You Support? there is a caption that says in-laws highlighted in blue that instructs you to choose "sister" in place of "other" in the case of a sister-in-law.
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