The Federal is stating that my military retired pay cannot be Type of account-Other. But It's not an IRA or a 403b. What should it be?

Double check your steps:

Online - 

1. edit the 1099-R, code 7. 
2. select not an IRA, 
3. a non-qualified plan, 
4. none of these apply, 
5. done.

For the desktop version: 

1. Edit the 1099-R, 
2. select not an IRA, 
3. not a public safety officer,
4. choose the state, 
   1. if you select a state
      1. select federal government retirement benefits, 
      2. select non-qualified plan
      3. done
   2. If you do not select a state
      1. choose from a non-qualified plan
      2. Done 

The 1099-R is still under investigation. Meanwhile, I saw a workaround here for the RMD issue.