I've never seen this: "The IRS matches them with a specific tax form"

All they do is make sure, for anything that was reported to them, the taxpayer reports at least similar enough information that the IRS can determine this information was acted on by your tax payer. There is no matching heuristic or reconciliation. You don't even need to enter individual 1099-NEC. You need to enter all related income, though. Even if Not reported on the 1099-NEC.

"They knew the forms were being added this year so I don't know why the software wasn't updated."

Did you enter that this person has it as part of Sched C?