Deductions & credits

I’m aware the IRS rules don’t allow an office-in-home deduction to generate a loss. For example a $3000 income - minus a $2000 expenses deduction = $1000 in income prior to an office-in-home deduction

 
In this instance any office-in-home deduction would be limited to $1000. But on my file it’s allowing a $1600 office-in-home deduction and creating a $600 loss. No loss should be permitted, I think there’s something wrong with the software or file and I have started a completely new return twice with the same results of a Sch C loss.
 
I’ve had no problems with the office-in-home deduction on the 2022 and 2021 returns.