Got 2022 CP2057 letter saying we didn't report $4,108 1099-R with distribution code 8. But I did!

It shows up on 1040 line 1h "Other Earned Income". When I double click that it opens up the Wages, Salaries & Tips Worksheet, and its under I (as in indigo) 1b. At the end of the day it was included in taxable income, but what do we do about the IRS letter?  IRS is asking me to amend the return (why fix what ain't broke?!)   Am I missing something???????