Thank you @BillM223 for taking the time to respond. After reading the instructions in i8889.pdf, I confirmed that Turbotax's behavior and calculations were indeed correct. Sorry for not taking the time to study those instructions before posting. I would have deleted my posting if I could have figured out how to do that. I'm working with the HSA custodian to get the excess contribution withdrawal returned.
Also it can be a bit confusing when one tries to retrace their steps through Turbotax's interview process as it appears that some steps will be skipped once answers have been provided. I'm guessing that removing all of my 1099-SA forms would have allowed me to fully retrace original HSA interview process.
