It's problems like this from HSA custodians that are the reason that when obtaining from an HSA a distribution of an excess contribution after the due date of the corresponding tax return it is important not to tell the HSA custodian that the distribution is anything other than a reimbursement for medical expenses. Telling them that the distribution is to correct such an excess leaves the door wide open for the HSA custodian to make a reporting mistake as happened here.
