It appears that Indiana did not follow the CARES act Section 3702 until later.

I'm not judging Indiana but...

D. Treatment of Menstrual Care Products Section 3702 of the CARES Act provides various changes related to menstrual care products, retroactive to Dec. 31, 2019. For purposes of this discussion, the definition of menstrual care products under IRC § 223(d)(2)(D), which applies to tampons, pads, and similar products, will be used. Under the Internal Revenue Code as in effect on Jan. 1, 2020, Indiana did not adopt the exclusion from income for health plans under IRC § 106 or the exclusion from income for health savings accounts under IRC § 223. However, Indiana will permit the income exclusion for such distributions provided under federal law retroactively pursuant to the updated Internal Revenue Code conformity date of March 31, 2021.

I ignored the error when it came up on my return. (Although I'm TOTALLY going to be buying Menstrual care products with my HSA card from now on. My wife and daughters power through those like they grow on trees.)