How to report withdrawl from Roth IRA

I withdrew 500$ from my Roth IRA account in 2022 and got form 1099R with distribution code as 8J. I put the 1099-R in TurboTax and it says that it might be subjected to taxes. I think it is because it doesn't know about my Roth IRA basis?

 

When I provide it my Roth IRA basis, it asks for Roth Contributions made prior to 2022. I entered 0 as I converted Traditional to Roth in Jan 2022 for year 2021 which I guess isn't a contribution? I have provided my traditional IRA basis to it and informed it about conversion from traditional to roth in Jan 2022 so it should have Roth IRA basis (verified that "IRA information worksheet" reports Roth IRA basis as 12000 (6k for each 2021 and 2022)). However, I don't  understand why it is not deducting 500$ withdrawl from Roth IRA basis,