Solved
I have someone who works in the industry saying. It's actually if a child doesn't attend school full time AND makes more than $4,000 they can't be considered a dependent.
So turbo tax doesn’t have a bug, though I think it should modify its description for how much your child lived at home. If I put the amount of time they actually lived at home the result was incorrect. But the question had a confusing statement in parentheses that intended to say if in school include the time they live at school as living at home.
When I included how much time they lived at school as being living at home I got the correct result.
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