It's not a bug. You misunderstood the question. It's not asking whether you itemized on your state tax return. It's telling you to check the box if you want to force itemized deductions on your federal tax return, even though your itemized deductions are less than your standard deduction, because you want to itemize on your state return and your state requires you to itemize on your federal return in order to itemize on the state return.
