1. Did you tell the HSA custodian back in early 2023 that this ($400) was a withdrawal excess contributions?
2. What was the distribution code in box 2 of the 1099-SA? Was it "1"?
As for why you should be taxed again, let me explain.
In 2022, you withheld through payroll deduction your HSA contributions. This is the code W amount in box 12 of your W-2. This code W amount is removed from Wages in boxes 1, 3, and 5 before your W-2 is even printed.
When part of this amount was declared to be in excess, TurboTax add the amount back to your Income (since it was removed from Wages in the first place). So you were taxed on this amount in 2022 because you didn't play by the rules.
In 2023, when you got this 1099-SA, it should have had a code 2 as the distribution code. If so, the amount in box 1 is ignored (i.e., you are not paying tax on it again), and only the earnings in box 2 are taxed. Got that? You are not paying tax on that box 1 amount again.
And if indeed you did not get a 1099-SA with a code of 2 in box 3, come back and tell me and I describe how to fix it.
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