I think this a problem in the software.
Although all caps were not recommended, 'CA' equals 'California', was used to shorten the entry and isn't 'shouting'.
I have the same issue. The answer to this question is never saved. What calculation does this question impact?
BTW, my issue is with the Desktop version, not the online version.
Please clarify. Exactly where in the program are you encountering this issue with a Residency question?
In the General Info section of the CA State form shown below. 3 or 4 questions into the section. Question 7 on the Sch CA(540NR) seems to be the related form linked to this question. The form reflects yes, but if you re-enter the General Info section the question defaults to No, as if you answered No previously or didn't answer the question.
I reviewed the California General Info section and found that the program does capture the information correctly on the Forms, though it may seem to have removed an answer when you revisit the Interview section.
For example, I found that the answer to whether you lived in the United States wasn't there on the second pass. After multiple passes, some of the questions were saved in the Interview and some weren't but they were all correct in Forms.
As long as you see the answer in Forms, and the answers are correct in the final review, the program has saved them. I am reporting this anomaly. Thank you for the follow-up.