Is your employer still in Delaware? That could be the source of the confusion.
Delaware has the "convenience-of-the-employer rule," which asserts that if Delaware employees are working outside the state for their own convenience, and not for the necessity of the employer, those wages are sourced to Delaware for income tax purposes.
Please see "Delaware Division of Revenue issues guidance"
This rule was modified during the pandemic, allowing workers who worked from hone by direction of the employer to be treated as out-of-state workers.
I do not know what the state is thinking - 2023 should have been under the pandemic rules, unless they issued some additional directives that I am not aware of.
You should reply to their notice and ask them under what rule would you be taxable.
It's possible that you will be treated as a telecommuter worker - working for a Delaware company while not living in Delaware, but not living at an out-of-state location at the direction of your company.
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