Yes, it is true that COVID is considered a Federally Declared Disaster, and TurboTax automatically assists with the Recovery Rebate Credit. There are questions during the interview pertaining to the amount of stimulus that everyone was received. Since COVID affected the entire nation, the stimulus applies in every state.
The question in TurboTax about whether you are affected by a natural disaster pertains to claiming a casualty loss of property due to natural disasters such as earthquakes, hurricanes, floods, wildfires, and the like. Your question isn't referring to COVID, since it's already been handled separately and taken into consideration by the software.
Here is an IRS link about disaster relief
And an IRS video for victims of disasters.
