Since this distribution is from an inherited IRA (code 4 in box 7 and the IRA/SEP/SIMPLE box marked), you should NOT be claiming this as an HSA Funding Distribution. You should instead be claiming this as a taxable distribution and a deductible HSA contribution. This is why TurboTax does not offer the option to report a distribution from an inherited IRA as an HFD; it is not in your best interest to do so.
Go back and delete the Form 1099-R and reenter it properly, without indicating that money was put in an HSA, then complete the HSA section to indicate that you made a personal HSA contribution of an amount equal to the amount sent to the HSA. The taxable result will be the same as the inappropriate entries that you made without incurring any of the the limitations associated with an HFD. The taxable result will be the same as what you saw by treating it as an HFD.
