The code 1 is probably correct in indicating that that distribution does not qualify for the exception. If you left that company that provides that 401(k) before the year that you reached age 55, you do not qualify that exception even though you qualify for this exception for distributions from the other 401(k).
If you actually had reached age 55 or over in the year that you left that company, you can claim the exception despite the code 1, but you do that on Form 5329, not by changing the code.
