I think the problem is simply that the wording is ambiguous.
The statement I'm getting is "you have at least one gain or loss from the sale or exchange of property or a distribution from a Coverdell". I thought it was a mistake at first, but now I think the intent is either
A) gain or loss from the sale or exchange of property
B) distribution from a Coverdell
In hindsight, it wouldn't really make sense to say "exchange of property from a Coverdell", only a distribution is "from".
