After posting the above, I followed the thread and changed the answer to the "Inherited question" as you suggested to another member. It did correct the return and the 1040 is now showing the right amounts.
But the update DID change the program. Before the update you could answer the question "Yes" that it was an Inherited IRA. It then, as in prior years, asked the first name and year of death of the person who you inherited the IRA from.It does not ask that question anymore. If you answer "NO" it still asks those questions.
Ironically, it still asks when the deceased was born.
I agree this is a Bug
