Income from work you perform from an AZ location is AZ-source income and is taxable by AZ. You must file a non-resident AZ tax return if your income exceeds AZ's filing requirements for non-residents, which are detailed here:
https://azdor.gov/individuals#:~:text=Nonresidents%20are%20subject%20to%20Arizona,eligible%20for%20a....
Since your employer is California-based, it must withhold CA income tax from your pay, including your remotely earned income. Your CA employer is not required to withhold AZ taxes. ALL your income is taxable by your resident state of CA, regardless of where you earn it. The 60-day rule you referred to applies to AZ employers, not to CA employers.
If your income requires you to file in AZ, you will be able to claim a credit on your AZ return for the taxes paid to CA on the AZ-source income. The credit prevents double taxation, which is prohibited by federal law. If you use TurboTax, be sure to complete your home state CA return before your non-resident AZ return. The program will then calculate and apply the credit.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
