As best as I can tell, this is a defect in the program. While in the client screen use Ctrl + L to e-mail Lacerte with your discovery. You should be able to itemize on KY even though you take standard deduction on the federal.

https://proconnect.intuit.com/community/accounting/help/sending-an-email-to-lacerte-support/00/4763

Maybe @IntuitBettyJo can start an enquiry.