I'm glad I found this posting... I was starting to wonder what was going on.
I am using Windows TurboTax Premier. I did not have this issue with the 2019 tax year version of the software. I must have filed before the broken update was released.
To get the exclusion to work correctly, I needed to select US Government (Including Military) instead of New York State and Local Retirement System (NYSLRS). I've keeping multiple versions of the file as I complete my return. This made it relatively painless to restore from the backup where I had not started the NY return yet and updated the response for "Where Is This Distribution From?". Once I did that, the correct values were displayed.
Observation -- In prior years versions, when I went through the input flows to verify that my entries looked good, I noticed that "US Goverment" selection was displayed even though I had selected the NYS option.
