Glad I'm not alone - As they say, misery loves company....

I spent about an hour on the phone with Lacerte talking with two different folks (it was escalated after talking to first one), and the second individual agreed something was wrong and he gave me a case number but couldn't tell me how long it would take to resolve ("the development group is very busy" I was told).  Lacerte won't allow us to file with this diagnostic, unfortunately.

What I determined is that when you check the box for "Report as taxable PFML", it is changing the earnings from "Unemployment Compensation" to "PFML Compensation".  However, it's not changing the "State income tax witholdings" to "PFML withholdings".  So Lacerte thinks you have entered a 1099-G with Zero Unemployment Comp and an amount for Unemployment Withholdings, so it's throwing off the error.  In any other situation it makes sense (can't have nothing in box 1 compensation and an amount withheld for taxes).   

Short answer: they need to fix the back-end so we can file!  Hope they do it quick.