How is it an obvious error?  It's what the instructions to Form 8960 tell you to do.  If it's an error, it's because the IRS e-file acceptance programmers take their returns to Block since they aren't paid to know anything about taxes.

In researching this I came across something that applies to an earlier discussion of whether you could have passive income on a Schedule C.  According to the 8960 instructions, 

"A passive Schedule C trade or business is any business that you did not materially participate in (for income-producing actions), or any trade that you did not have involvement in on a regular, continuous, and substantial basis (for income-producing actions)."