Yes, if you didn't earn any income in California (or live there in 2021), you would report $0 as CA income and enter the amount of CA tax paid for a credit.
You should ask your employer for a Corrected W-2 for your records, since what you are reporting does not match the W-2 that the IRS has a copy of.
Click this link for more info on How to Get a Corrected W-2.
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