The conversion of a requested refund into a Foreign Tax Credit (FTC) carryover is the preferred method the IRS uses to handle a situation like yours.
You can only use foreign tax credits to lower the U.S. tax on the same foreign income. If the tax you paid is higher than the U.S. tax on that income, you won’t get the extra amount back as a refund. Instead, any unused credits are carried forward to future years.
Yes, it was a deliberate act on the IRS part because of the way they treat any unused credits. The fact that it appears on your 2023 return in Table III (Carryover Adjustments) with the note "2022 amendment" confirms the IRS processed your 1040-X. They didn't ignore it; they re-calculated your Form 1116 and determined that the benefit belonged in your carryover section rather than your bank account.
Since the IRS adjusted your Foreign Tax Carryover, they will consider this if you were audited. You shouldn't need to do anything now since you filed your amendment and your amendment was processed. You handled this correctly.
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