Form 1116: gross income doesn't account for FEIE

I'm US citizen living abroad. Most of my income is from foreign wages. I entered my US based income (capital gains) + my foreign income (wages) and select FEIE to exclude my foreign income. I'm working on the foreign tax credit now, and at some point Turbotax shows me what my total gross income is. The number is way higher than my actual gross income, it looks like the form/software double counts my income from 1040 and 2555, but doesn't factor in the 126,500 FEIE, so essentially the gross income is 126,500 too high. Looking at the form, this amount is being used for some deduction calculation.

Do I need to manually correct this, or Turbotax does calculate the correct amount regardless?

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