In this example, $65k reported on Column B would be the telecommuting wages during CT residency.  $5k in Column D would be NY-wages sourced to CT workdays during the CT-NR period.  The total of $70k will then flow to CT-SI and CT-1040NR as wages taxable to CT.  Since CT taxes PY/NR on an as-if basis, the entire $125k is reported in Column A and does not get adjusted.

On the IT-203, you will see the entire $125k reported as taxable wages under both the federal for the as-if resident tax computation.  The NYS column has the same amount because NY regulations source to NY both the $60k in wages earned during NYS residency and the $65k in wages earned during her CT residency (and NYS-NR) as a telecommuter for her NY employer.

It is clear that $65k will be subject to double taxable because of NYS' convenience of the employer rules.