The calculation in TurboTax is correct. TurboTax shortened the description for line 1 of the Capital Loss Carryover Worksheet, which makes it a little unclear. On the IRS worksheet line 1 says "If the amount would have been a loss if you could enter a negative number on that line, enclose the amount in parentheses."
On your 2022 Form 1040, line 15 is forced to zero if line 11 minus line 14 is negative. In that situation the loss on line 7 has not given you any tax benefit, so it does not "use up" any of the carried over loss. Line 1 of the Capital Loss Carryover Worksheet is what Form 1040 line 15 would have been if it had been allowed to be negative.