It looks like a bug to me, I sent a report. If you report it as if it was a 1099-MISC, you might or might not get an IRS letter. I can't recommend whether you should wait, or do it that way and e-file now and see what happens.
Also, I think it is possible that if you are audited, the IRS will rule this was wages. The basis of a discrimination suit would seem to be that you were underpaid, or denied a promotion, for some discriminatory reason. That would make the settlement considered as wages. Maybe the settlement was for bad comments around the workplace and you were never actually denied wages or a promotion, just made to be the object of hurtful comments. In that case, you will want to make sure you save all the relevant documentation in case of audit. Before the pandemic, there was a very high chance of getting an IRS letter whenever you had a 1099-NEC and did not report self-employment tax on schedule SE. I don't know if the IRS is still sending out as many letters as before, but you will want to have your documentation ready in case you get a letter.
