Sources on the "Empire" set tell TMZ ... Thursday was a complete disaster on set after Jussie turned himself into Chicago Police. Terrence was so upset he refused to come out of his trailer for most of the day.

A source close to Terrence tell us ... the actor didn't believe Jussie's account from the get-go, he felt the story never added up. We're told Terrence grilled Jussie periodically as holes began to emerge.

Tensions between Terrence and Jussie boiled over after the 2 Nigerian-American brothers who allegedly helped Jussie stage the attack, Abel and Ola Osundario, were detained by police ... we're told Terrence confronted Jussie once again, screaming at him to come clean.

Further illustrating his disdain for Jussie ... we're told Terrence was nowhere to be found Thursday night when Jussie addressed the cast and crew.

Terrence was not alone in his feelings ... we're told many others on the cast and crew felt Jussie was lying and ultimately that's why producers decided to remove Jussie from the set for the final 2 episodes ... it was just too disruptive.

Interestingly enough, Terrence posted a video Saturday that was seemingly in support of Jussie. The clip shows Jussie playing with Terrence's son ... and a caption that read, "All your lil homies got you... We love the hell outta you."

Nevertheless, it doesn't take away from what we know happened on Thursday.