That makes no sense. You are't permitted to recharacterize from a Keogh plan to a Roth IRA, you can only do a taxable rollover from a traditional Keogh plan to a Roth IRA. One is only permitted to recharacterize current-year contributions to a regular traditional IRA to be contributions to a Roth IRA or recharacterize current-year Roth IRA contributions to be contributions to a regular traditional IRA.
Moving money from a Keogh plan to a Roth IRA can only be a taxable rollover. either by direct rollover (code G in box 7 of the Form 1099-R) or by indirect rollover (code 1, 2 or 7 in box 7 of the Form 1099-R). Entering either one of these and indicating that the money was moved to a Roth IRA will result in TurboTax treating the amount as conversion basis.
However, from your description it doesn't even sound like you did a rollover. It sounds like you took a regular taxable distribution from your Keogh plan (code 1, 2 or 7) and simply used the money to fund a new regular IRA contribution. Given what Fidelity said, perhaps you actually made a regular traditional IRA contribution with the intent to convert that money to Roth (a so-called backdoor Roth) but Fidelity actually performed a recharacterization of your traditional IRA contribution.
