I tried this as I posted in this thread. As the Lacerte instructions say for that field, it ONLY lets you allocate STATE REFUNDS, NOT UNEMPLOYMENT.  When I tried this, it did NOT allocate and gave me a diagnostic stating exactly what you just posted: 

"If the 1099-G was issued for a STATE AND LOCAL INCOME TAX REFUND or a PROPERTY TAX REFUND, and you wish to allocate a portion of the refund to the taxpayer and a portion of the refund to the spouse, enter numeric 2. If you enter a numeric 2, you must also enter the percentage that you which to allocate to the taxpayer in “If Allocating, Percentage Allocable to Taxpayer (.xxxxxx) . DO NOT ENTER a 2 in this code if the 1099-G was issued for a purpose OTHER THAN a state and local tax refund or a property tax refund."