What you see is a Critical Diagnostic Warning the key word is Warning. https://proconnect.intuit.com/community/individual/help/diagnostics-and-suggestions-faq/00/97687

https://www.ftb.ca.gov/forms/2019/2019-1540.html#ParentStepparentFatherorMother clearly shows that the parent need not live with you. You should be able to go ahead and e-file and FTB has the knowledge to put parent and zero days together. 

The main reason to file 3532 is to avoid a letter from FTB, but sometimes FTB will still send out a follow up letter. With any HOH, tell the client to be sure to maintain records. "You must be entitled to claim a Dependent Exemption Credit for your parent. That is, your parent must meet the requirements of a qualifying relative and you must have paid more than half the cost of keeping up a home that was your parent’s main home for the entire year. Your parent’s main home could have been his or her own home, such as a house or apartment, or could have been any other living accommodation."