Turbotax says a RMD is was required from the Non-qualified annuity I inherited. This is wrong according to my research. Is this error going to affect my outcome?

No.   Either say it was all a RMD or a RMD not required.

The answer to the question does not go on your tax return, it is simply to make sure you do not owe any penalty for not taking the RMD or use it for an ineligible rollover.

There is no option to state the RMD was not required. Turbo tax simply states that it is required and asks if the payment was for the (required, according to them) RMD. It implies that if it was not an RMD, that you have a problem, when it is not actually required.

It should say [yes] some or all was a RMD or [no] none of it was a RMD.

Yes, it does, while stating that an RMD **IS** required. There is no option to state that it wasn't required.

Check the no box - same thing.  As I said, it makes no difference - TurboTax blindly asks the question for any 1099-R with a code 4.   Nothing goes on the tax return.