Ah, thanks for the additional context.  I just checked and see that MN is one of those states that do not tax NR on unemployment compensation paid by the state.

Here's what you need to do to overcome the diagnostic:

1. Under Income > Tax Refund, Unempl. Comp. /1099-G > Federal > Unemployment Compensation > Total received (1): Code the amount to MN;
2. Scroll down to State > Payer's identification number {MN}: Enter the 7-digit ID from the 1099-G;
3. Under State & Local > Part-Yr./Nonres. Information > MN part-Year/Nonresident Info > Schedule M1NR Minnesota Portion Overrides > Other income [Override]: Enter -1 (this means 0 for PTO/Lacerte)

This will cause PTO to recognize the unemployment compensation as being sourced to MN but to report on Sch M1NR that $0 of that income is taxable to MN.  Sch M1W will report the unemployment compensation and MN SIT as on the 1099-G.  This MN SIT will then flow correctly to M1 as a credit, which will be refunded assuming your client has no other MN taxable income.