"In total my two employers originally contributed 7,529.46. But 800 was returned to me on 12/31/2021. So the two W2 code W value add up to 6,729.46."
So the sum of the two code W mounts on your two W-2s is 7,529.46. It does not matter what you had returned in terms of calculating the excess contributions. TurboTax told you that you had excess contributions of 329.46 (note: in your initial post, you said, "329.48") because your annual HSA contribution limit was 7,200 and you and your various companies contributed 7,529.46 in the aggregate to your two HSAs.
"$800 was returned to me by my employer on 12/31/2021, "
Since they did not take this from your HSA, it's just free money (well, I assume they added it to your W-2 as Wages).
But in the future put everything in writing with your new payroll department, because they seem very poor at following instructions.
When TurboTax allows you to withdraw only 329.46 in excess, you have a problem. As I told you you just can't willy-nilly withdraw amounts out of the HSA, because if/when the IRS audits you, your tax returns and the HSA custodian's records won't match.
The problem is that you withdrew 470.54 too much. Ordinarily, the IRS would consider this a withdrawal for reasons other than paying for qualified medical expenses, which means it gets added to your Other Income and penalized another 20%.
What to do? The first thing is to contact the HSA custodian (whichever one you withdrew the $800 from) and tell them that the $800 withdrawal was a "Mistaken Distribution". Tell them it should have been only 329.46.
They don't have to accept this, so be nice to them, but it they do, then you will sign a form and send them the 470.54 that you should not have withdrawn, and they will change their paperwork, which will go a long way to straightening things out.
Let me know if they will go along with this.
OK, you have explained everything except "Unfortunately, some of your excess contribution is caused by a prior year excess contribution." I assume that you did not have an excess contribution on your 2020 return.
This is why I asked you to clear all of your HSA data by doing those 6 steps. Sometimes when you go through the HSA interview more than once, TurboTax sets a variable to an amount, and then won't show it to you again so you can change it. Based on what you have told me, you should not be getting this prior year excess message.
So after you do the 6 steps above to erase all your HSA data, please go through your HSA interview again. Do you get this prior year excess message again?
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