I realize it is possible to offset the reduction on the 896 worksheet.  But a manual entry should not be needed.  

The cross reference for Line 4B on Form 8960 Worksheet says:

From Schedule C, Activity Summary Smart Worksheet, line1 if the box is checked indicating the activity is a nonpassive trade or business not subject to net investment income tax.

Checking Line G NO on Schedule C makes the activity Passive on the Activity Summary Smart Worksheet.  So nothing should transfer to Line 4B.

Note that the 2021 program was incorrect in that it did not pick up income from Schedule C on Form 8960.

It seems to me there is a programming error.