Replying to my own question in case this helps someone else. On the fed side I selected general rule which was forcing the state side to ask the question. Once ...
I came across this after my initial post. I'm assuming the Vanguard info is just poorly written.https://ttlc.intuit.com/community/entering-importing/help/when-w...
I also found the wording a little tricky until I saw the reply. TT should include this response or something like it in the context help of this question.