This is because you didn't "move" either, at least for tax purposes. If your state of residence (home of record) is CA, and your wife's state of residence is CA, you will file a CA Form 540
Active-duty military are considered to live in their state HOR no matter where they are stationed. Their active-duty pay is considered to be earned in their state HOR.
In the Personal Interview do not select "Lived in another state in 2016" for yourself. That question only applies if you changed your state of residence in 2016.
State Military Filing Rules
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