"The one I am focusing on happens to be in the name of the spouse, with distribution Code P."

A taxable distribution would be netted by a tax deductible contribution for the same person that is named on the 1099-R and is tagged for that contribution.

"For the 2019 correction, I believe they were over the deduction limit so yes, it was a correction. I do not know if it was before or after the return was filed."

Here's what matters: you seem to have a 2020 1099-R for something that applies to 2019. If it was not done by the filing due date of the 2019 return, filed in 2020, then it is considered also reportable and taxable in 2020.

"I can confirm that on 8606, Line 1 is populating $7,000 as "Enter Your Nondeductible Contributions to traditional IRA for 2020."

Then it is not offsetting any taxable distribution for 2020.

It seems you have some reading to do on all of this.