It's not an error. Capital gain distributions from box 2a of your 1099-DIV have to be reported on line 2 of Schedule NJ-DOP. This has been true since 2018.
It doesn't matter whether you take the distributions in cash or reinvest them. They are taxable income either way.
And "property" does not mean just land or real estate. Anything you own is property. Anytime you sell an investment, including mutual funds, it is a sale of property.
