K-1 incorrect loss on Schedule E

I'm confused about why my K-1 S Corp losses are being brought forward to Schedule E. My stock basis is 0 and there is no debit basis. I have a loss from the current year and a carryover lass from prior year. Both are being brought forward to Schedule E line 28 column (i) as separate items.

 

Form 6198 has the sum of both losses on line 5. Part II has 0 on line 10b

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The At Risk Wks S has the current years loss and the carryover loss on A line 1.1. The sum of the losses are in the Allowed column and carries through to A line 8.

 

Form 7203 is correct and shows the sum of the current year and prior year as carryover losses.

I tried overriding the allowed column on the At Risk Wks S A line 1.1 and forced it to 0. This changed Schedule E line 28. The entry for the carryover loss is still present in 28(i). The entry for the current year now has a value equal to the carryover loss from the prior year in 28(k) income column. The net effect is that a 0 loss is on Schedule E.

 

This raises a couple of questions.

After overriding the allowed losses on the At Risk WKS A, why does Schedule E handle the prior years losses in th way it did?

Why isn't TurboTax disallowing the loss in the first place?