No, this is not a bug.
This is the reason that the Refund Meter was removed from such a prominent position in TurboTax 2024, because too many taxpayers were watching it screen by screen and making the wrong conclusion when the tax jumped.
TurboTax has to do a lot of things behind the scenes, and sometimes they are not done for a while.
In this case, the HSA contributions described with code W in box 12 on your W-2 are not non-taxable until you have gone through the HSA interview to show that you have proper HDHP coverage. Since most taxpayers enter their W-2s first and the HSA interview quite a bit later, they mistakenly assume that TurboTax is incorrectly taxing their HSA contributions.
Just complete the HSA interview (Deductions & Credits->Medical->1099-SA, MSA, HSA), and you will see that the code W amount has been removed from your income.
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