Yes, MD income on the 511 is higher and that's used to calculate the PTE tax.

But the higher MD income should not be reported on the MD K-1.   The MD K-1 uses the lower federal income because the shareholder or partner is taxed based on federal income (with a PTE credit addback, which doesn't necessarily line up with the deduction taken on the PTE tax return).

From the MD K-1 510/511 instructions for Section A: "Enter federal distributive or pro rata share of income from federal Schedule K-1"