CA taxable amount on dividends from fund holding >50% US govt obligations?

I'm doing taxes for a CA resident with a taxable brokerage account. I've read that CA exempts dividends if a fund is more than 50% invested in CA bonds and US obligations. But I'm not sure if I'm understanding or applying this correctly.

The brokerage firm offers a supplemental breakdown showing direct and indirect federal source income for each holding. There I can see that one money-market fund (XYZ) has 69% in "direct federal income", with the accompanying notation "CA Qualified: Y"

Does this mean that some or all the dividend distribution shown on 1099-DIV for XYZ should be CA exempt? If yes, is it 69% exempt, or 100% exempt? How/where does one enter that on the CA forms, and is this a common situation? I don't see how tax software could pick this up automatically from just the 1099. Using freetaxusa, if that's relevant.