Why is TurboTax reporting I-Series Bond interest on my MN state return? As I understand it, Treasury I-Series Bond interest is exempt from state tax.

I filled out all federal and state questions in TurboTax and got to the point of filing the return, but the MN Tax Due is still higher than it should be due to the I-Series bond interest. When I go back to the Federal Taxes tab, to Wages & Income, and edit the Interest on 1099-INT section, if I edit the amount for the Treasury Direct bond interest (box 3), I can see the MN Tax Due change.

It appears to be adding 1% of the bond interest in box 3 to my MN State taxes. How can I fix this?