Why am I getting only a part of my foreign income excluded through foreign income exclusion

Hi,

I relocated to India back in April 2021, and have been working a full time job here since May 2021. Now on reporting the income earned, say $X through salary until Dec 2021 and moving expenses and choosing the physical presence test, TT comes back saying only $Y (around 71%) is excluded from US taxes. I read here that upto around $108k is deductible under "Foreign Earned Income Exclusion". This is jacking up my US tax liability

Why am I running into this discrepancy?

Should I consider claiming FTC (Foreign tax credit) on my salary income too, besides other foreign income such as interests on bank deposits?