I also received this critical error message: Form 1116, Part II: A foreign currency conversion statement is required for foreign taxes reported as paid in foreign currency. Please note: If Form 1116 was triggered due to entries for interest, dividends etc., and not via the Foreign Tax Credit area , entering the conversion statement will now trigger an additional 1116 column unless the foreign source that relates to the conversion statement is tied to the new Form 1116. This can be done in the interest, dividends etc., screen that has the foreign taxes by choosing the correct Form 1116 in the "Form 1116 name or number [O]" field located in the foreign section. The tying of the foreign source to Form 1116 in this case is required and may cause an efile reject if not completed as the statement will not be rendered in the efile. US - Ref  No. 7292.

I had to reach out to Intuit for help and after looking into it, Zachariah helped me figure this out. I had entered the foreign taxes from the 1099-DIV that is in US Dollars unto the Foreign income tax withheld (foreign currency). You have to remove the amount from there if there is no conversion to be made. This then removes the critical diagnostic and you can proceed further.