When will the updated guidance on Cares Act 401k taxation implications be updated in the system? Also, in Box 15 of the 1099-R, you are missing a state from the dropdown

It depends on when IRS gives us the green light, unfortunately.  As of today, IRS does not even have the 2020 forms available for this special tax treatment, which are the Form 8915A and 8915B.  At this point, the IRS is not accepting e file on either of the form.  They are expecting the forms might be available around February 18, 2021.  However, it is only for paper-filed.  Moving forward, we do not know if IRS will change their mind about allowing the e-filing.  

With all that being said, I would suggest either you wait until February 18 to paper file or you can file your return now without the Form 1099R and come back later to amend.  

I wish I could help you more.  Unfortunately, that's all we know from the IRS.  

Regarding your second question, which state are you referring to?  Note that the states drop down on the 1099-R screen include all the states that have state tax.  It excludes those which do not pay state taxes.  ( Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Wyoming, Washington and state of Tennessee).  The drop down does include Tennessee due to some filing requirements for business related matters.