Is Turbotax aware their recommended deduction is wrong? They recommended a standard deduction of $25K but my itemized deduction was $37K?? what gives?

Are your Itemized deductions $37,000 AFTER any limitations?  Look at line 17 of Schedule A.

Are you subject to Alternative Minimum Tax (AMT)?  Look at line 1 of Schedule 1 (or Form 6251).

Depends on what the itemized deductions were.

even if you entered far more:

1) state income taxes + property taxes are limited to 10,000.

2) Medical expenses are limited to those you paid from pocket (not re-imbursed)....but only the $$ amount that exceeds 7.5% of your AGI.  So sometimes none of it can be deducted.

___________

Not sure what TTX does if AGI is less than 25K in the first place...it might use Std Ded to avoid having a State refund from this year, get taxed as Federal income next year.....but that's a pretty subtle decision which depends on a lot of deduction details.