Step 11 is where you made the error. This question by TurboTax asks how much was recharacterized, not how much was transferred. The correct entry at that step is $500.
(The indication that you still have an excess contribution is that TurboTax believes that you still have contributed $122 to the Roth IRA because you inappropriately told TurboTax that you recharacterized only $378 of the $500 Roth IRA contribution.)
