The IRS computers will see the 1099-R Code P and look for either the income reported on the original return (as in your case) or an amended return that include the income.
Look at it like this: if you prepare an amended 2021 tax return to first REMOVE the $176 you reported last year, then add the $176 income from the 1099-R Code P (of course there will be no amended return because the tax liability and income will be the same).
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