David described the situation correctly. The distribution will be added to Other Income (line 8 on Schedule 1 (1040)) when you enter the 1099-SA, but when you finish the subsequent screen and indicate that the whole distribution was for qualified medical expenses, TurboTax will remove the entry from line 8 and your AGI (line 11) will go back down.
It sounds like TurboTax has gotten some extra input that has confused it. I would encourage you to delete the 1099-SA and re-enter it.
Note that it is normal for the AGI to go up temporarily. The AGI goes up because the IRS considers the 1099-SA distribution to be taxable by default until you show that it was all for qualified medical expenses.
This is why we encourage taxpayers not to watch the Refund Meter too closely.
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