All seems good with the 2022 code-JP Form 1099-R that you propose. No need to mark any 2b boxes. Nothing goes in boxes 3, 5 or 6, they never apply to distributions from Roth IRAs. Good that no taxes were withheld; it's usually a mistake to have taxes withheld on a return of contribution.
A $151 jump in tax liability seems a bit high unless her taxable income ends up being a bit above the standard deduction and about half of the $1,000 of earnings falls in the 10% tax bracket.
One thing I didn't think about until now, the $1,250 regular distribution will reduce dollar for dollar the amount of 2022 retirement contributions considered for the Retirement Savings Contributions credit she might otherwise be eligible to receive on her 2022 tax return. That's not a problem if she ends up contributing more than $3,250 for 2022 since the credit is calculated on a maximum of $2,000 of contributions or if she doesn't have enough tax liability to be able to get all of the credit in the first place (it's a nonrefundable credit), but it's something to consider. Doing the rollover of the $1,250 and a return of $1,250 more of the 2021 contribution to make room to apply the $1,250 excess as a 2021 contribution would entirely eliminate that potential concern. Still, with about 30% investment gain, rolling back the $1,250 attributable and doing a return of $1,250 of the 2021 contribution probably does not make sense (unless it might mean the loss of a substantial amount of Retirement Savings Contributions Credit for 2022).
