No. It's fine. It says that Code #1 (of 2 possible codes) is 8. There is no second code, no code 1. If there was also a code 1 it would say:
Distribution Code 1: 1
Distribution Code 2: 8
(or vice versa)
Payers who use substitute forms that do not conform to the format of the actual IRS Form 1099-R often create such confusion.
