"Distribution" simply means a transaction that is reportable on your tax return, so you indeed had distributions from both accounts as defined in the tax code. A distribution is also termed "income" under the tax code, so the total of $9,687.23 shown by TurboTax is correct. The recharacterization, however, is nontaxable income, reflected in the fact that it is excludible from the amount on line 4b of Form 1040. TurboTax automatically excludes from line 4b any amount reported with code N.
With regard to the Roth conversion reported on the code-2 Form 1099-R, the taxable amount is calculated on Form 8606 and included on line 4b.
