Because of the 72t I do receive a 1099R at tax time. State might link it up, but as you say impractical. They could also look back at prior tax years and see the same info. That might happen, but they already had my tax form at application time showing a substantial withdrawal.
As further evidence to me that IRAs (and evening 401Ks) are a non-issue, the CARES Act lets people take money out of their IRAs or 401Ks without penalty and, to the extent the money is returned within three years, without income tax. Essentially a rollover with a three year window. So how in the heck could unemployment track and judge these withdrawals since they may not be taxable, depending on repayment, but that determination won’t be known at any specific time and certainly not in the UE timeframe? That throws a monkey wrench into the whole system.