Yes, the multi-state box is checked in screen # 1.  This box is checked automatically by the program  (i.e., it's grayed out meaning I can't check or uncheck it).

And yes, the 760PY is generated for VA and I agree with all the figures including VA taxable income on line # 16, but line #17 of the 760PY is blank!  The VA income tax summary shows a marginal tax rate of 0.0%.  Last time I checked VA has income tax.