"So go back into the HSA interview and tell TurboTax that this 1099-SA was not for medical expenses (even if it was)."
To be clear, only $149 needs to be "not for medical expenses." If you withdrew more than $149, you should tell turbotax that it was not all used for medical expenses, and then when it asks how much was not for medical expenses, enter the $149 there . The amount over $149 that you did use for medical expenses is still tax-free.
