I think the 1099-R received for 2021 will have a code P on it, and the earnings should be reported in prior year. The IRS pub 590-B says:

Withdrawals of contributions by due date.If you withdraw contributions (including any net earnings on the contributions) by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them. If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date. The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions.

The follow up questions are:

1. Are this earning subject to early distribution penalty?
2. What is the distribution code when we enter data or does the IRS sees the code?
3. The IRA checkbox on 1099-R is for both traditional IRA and Roth?