Yes, your wife’s 2021 and 2022 Form 8606 looked ok.
If she is able to keep the 401k for all of 2023 and do a reverse rollover so that there are only the nondeductible contributions left in the traditional IRA, then you could convert the full amount left in the traditional IRA and the traditional IRA would be $0 on December 31, 2023. It is important that she can report a $0 value for Form 8606 on December 31, 2023.
Then in 2024 she could rollover her 401k into the traditional IRA and only have the pre-tax funds in the traditional IRA. But she will have to check if she can keep the 401k until 2024 and if they allow a reverse rollover.
@dhuynh44
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