Your Form 8606 and Form 1040 line 4b appear to be correct.
With no other money in traditional IRAs, you receive no deduction on Schedule 1 line 32 for the traditional IRA contribution and your Roth conversion does not appear as taxable on Form 1040 line 4b. Form 8606 should show your nondeductible contribution on line 2 and on line 18 the taxable amount of your Roth conversion should be zero (assuming no investment gains between the time of the traditional IRA contribution and the Roth conversion.
I suspect that the "increase" in your refund when you entered the nondeductible traditional IRA contribution is simply the offset of the decrease in your refund that occurred from entering the Roth conversion. I suggest saving your tax return file, then as a testing by deleting both the 1099-R form and the IRA Contribution Worksheet. I suspect that the resulting refund will be the same as when both the 1099-R for and the IRA Contribution Worksheet are present. If you do see a difference, print and compare your tax returns with and without the form and worksheet.
