Your underlined part is after the part saying any distributions not previously included in income is taxable. If all of it is a backdoor Roth, previously taxed, then the rollover is just a rollover to PA.
The key issue with the state is really about those who haven't been PA residents the whole time. If your contributions were made while PA resident, then it has all been taxed and the rollover is just that. If you lived other places and did not pay taxes on the money, then it is taxable in PA.
@mmagdits1
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