My situation (for TY2023) is similar to that described (for TY2022) in the original posting by taxnovice15 on March 2, 2023. That is, required in a prior year to file Form 1116 (resulting in a foreign tax carryover), but qualifying in the current year for the Form-1116-filing exemption, TT defaulted to not using the exemption and filing Form 1116 (although none of the carryover was utilized!), resulting in being limited to claiming a smaller (by about $200) foreign tax credit for the current year than if I had made the appropriate "adjustments" within TT (as described in the reply posting by DMarkM1 on March 8, 2023) to effectively exercise the exemption election and not file Form 1116 (and also be prevented from applying/creating any carryover to/from this year, which wasn't useful anyway!). In a rush to file on time, I didn't notice this situation until later careful review and only then discovered this pertinent thread in the Turbo Tax Community forum.
My motivation in posting this reply is to (hopefully) warn other users of a situation that seems potentially widely applicable and to suggest that Intuit be encouraged to enhance their TT product's step-by-step mode for future years in order to detect this situation proactively, bring it to the user's attention, and offer a clear choice whether to exercise the exemption election or to file Form 1116.
