I haven't received any rejects from Oregon but after about 3 pm yesterday (Saturday), all of my new Oregon returns are sitting with Intuit, in addition to about 20 more that I had sent before Feb. 12. In other words, Intuit is not transmitting them to Oregon. Are you seeing the same thing?
I got that same error today. My software did not need updating like it said. I updated on the 12th before I submitted and it still says I’m up to date. I did go ahead and resubmit and my whopping $13 refund switched to owing $92. Hurray 😒
The issue is that Oregon taxes both stimulus checks, the first and second round. Turbo Tax, and maybe others, made a mistake within their software that only taxed the first round and not the second. I don't think it's right for them to tax the second round if you received it after the first of the year, it should be included within your 2021 taxes, but whatever. They messed up and now everyone owes more who filed before they caught the glitch.
Actually Oregon does have a policy, as explained in their instructions, to treat things like the stimulus using the accrual method. That means that the subtraction has to be reduced in the year the promise becomes law. That year would be 2020. I began screaming at Intuit as soon as I noticed that the software was messing up. (It is still messing up, by the way, but not as badly. It continues to count penalties as part of the federal tax, which it is not supposed to, according to the instructions for Form 40. But that's minor, and the software can still be overridden.) I got lip service and no direct communication from anybody, and that's why this thing is now a mess for many, particularly for those who filed their Turbo Tax returns well before this was fixed.