I don't think it has been fixed as I can still see distorted pillows.
I've had my form accepted for processing with my foreign TIN, and this is what I put on mine.
For type of income: "Copyright royalties paid for the reproduction of, the use of, or the right to use, artistic works."
And for the reasons I meet the terms: "Beneficial owner is a citizen of the United Kingdom, who lives and works solely in the United Kingdom, and who is registered to pay tax to the tax authority of the British Government, Her Majesty's Revenue & Customs (HMRC). Copyright royalties have a 0% withholding rate per IRS Publication 515, Page 55, Table 1."
Obviously, if you aren't British you'll have to change those bits, and you'll also need to check in Publication 515 whether your country is listed in the Table on page 53, or the Table on page 55, and what percentage rate applies to you.
Thank you so much LouieGee for posting this. I'm afraid I'm pretty clueless about it all, so I used your reasons and my form has now been successfully processed.