The problem is that the FTB just made this announcement about a week ago.

https://www.ftb.ca.gov/about-ftb/newsroom/news-releases/2023-05-reminder-for-san-diego-county-taxpay...

It is not how this was handled for the last few disasters, so tax software companies probably did not expect this. Though they do need to address it and quickly.

I think you are making all valid points - the county is listed on individual returns and the cities in the addresses should be in the FTB's software by county for entity returns - the FTB should be able to adjust for this accordingly.

But that's not the choice they are making and I'm sure my clients will get notices as well. Fortunately, we extended most, but certainly not all.