I did a traditional IRA to a Roth IRA conversion but TT thinks it is a contribution and charges me a $600 penalty. Is there a problem with TT in this area?

No, there is not a problem with TurboTax in this area.

There are some very specific steps to take to have a 'back door' Roth conversion entered into TurboTax.  This would be where you specifically made a non-deductible contribution to a Traditional IRA and then converted it to a Roth IRA.  The TurboTax article below will give you the steps you need to take to have it reported correctly on your return.

If you simply took an existing Traditional IRA and converted it to a Roth IRA, then entering the Form 1099-R reporting the distribution is all you would need to do.  These steps are outlined in the article below as well.

How do I enter a back door Roth IRA conversion?