Retirement tax questions

Yes, 8606 shows $6K as non-deductible (Line 1)  But the form also shows another $6K on line 2 (which I think is incorrect as I have no ongoing balance in a Traditional IRA.

 

8606 was part of my return and now I have a notice saying that i did not report the $6K as income but others have (referencing Vanguard 1099-R).  

 

Shouldn't the 8606 form have shown that it wasn't income?