Since you received the (2017) benefits in 2022, that money is taxable in 2022. But, since it is added on top of your other income, it could push you into a higher tax bracket. For that reason, you are allowed to calculate the tax as if that 2017 lump sum has been received (and taxed) in 2017. When you identify it as a prior year lump sum, TurboTax (TT) will do that calculation for you. But, you have to enter information from your 2017 tax return for that to happen. It may or may not make a difference. TT will make that choice if you are able to retrieve the 2017 info.
