Is VUSXX+Etrade+NJ a bad combination?

It came to my attention that combination in headline might cause be problems at tax time(TurboTax).

The summary from Copilot (my apologies, but this is more succinct then what I'm capable of)

E*TRADE does not treat VUSXX as a native fund.

It treats it as a foreign/guest asset.

Because of this:

E*TRADE’s 1099‑DIV does not include the required Treasury breakdown

TurboTax cannot recognize VUSXX as a Treasury MMF

TurboTax assumes the dividends are 100% taxable in NJ

You cannot simply “check a box” to fix it

You must delete the imported 1099 and rebuild it manually

New Jersey has special rules for Treasury income:

NJ does not automatically exempt Treasury interest

NJ requires a manual adjustment on Form NJ‑1040

NJ often requests supporting documentation

NJ sometimes asks for quarterly compliance test results

NJ sometimes asks for fund‑level USGO % proof

At Vanguard, Schwab, Fidelity — TurboTax handles this automatically.

At E*TRADE — you must do all of this manually.

My question. Is all of the above correct as I would then want to sell VUSXX and move the money to either Charles Schwab SNSXX or Fidelity FDLXX and THEN have all of that handle Correctly (as per the bolded line) by TurboTax. Versus going trough the above head ache with Etrade and TurboTax no understanding each other.

thank you