CA source income for military spouse

Dear Tax Pros, I hope you are well. We have an active duty soldier who claims CA for his residence. They are both in Italy right now on PCS orders. His wife will claim CA as well because of the military spouse rules. She makes 100k from a k1 from a 1065 and it is a CA company. She receives a CA K1. I wanted to confirm, it seems even though the active duty soldier does not have to pay tax on his income from the military, the spouse still does since her income is CA sourced. Or is there a possible exclusion of this K1 income form CA taxes? Thank you for any guidance.