TurboTax has never had the ability to create a Form 8606 for a distribution from an inherited IRA and likely never will, at least not for the foreseeable future. The bug fix that everyone is awaiting will just be to restore the TurboTax behavior on the Form 8606 for the taxpayer's own IRAs that was correct in 2019 TurboTax but was broken with the initial release of 2020 TurboTax.
For inherited IRAs, TurboTax requires that the user to separately calculate the taxable amount when the inherited IRA has basis in nondeductible traditional IRA contributions and just enter the resulting taxable amount.
