Mortgage Interest Deduction Issues

I have an issue with the 750K cap for the mortgage interest deduction. Here is the situation:

 

Purchased a home for $470k in 2016. Balance as of 12/31/2022 per 1098T- 309K. 

Purchased a home for $903k in 6/30/2022. Balance as of 12/31/2022 per 1098T-896K

When I enter 1098Ts then I need to limit the interest deduction because since 6/30/2022, I have been over 750K cap. 

The system calculates the average of both mortgages by adding the beginning and ending balances of both mortgages, then it divides it by 2 , and then it applies the limitation percentage which results in me being able to deduct only about 60% of interest from both homes. This method seems to be consistent with the IRS guide. But I was only over the limit since 6/30/2022, so this makes no sense. How do I go about this?  I do have 2 1098T issued so I am assuming I must enter the numbers exactly how they appear on those 1098Ts. 

 

This seems to be the right way to calculate the average balance for 903K loan- take 903k/12 X 7 months =451,500. Is that accurate?

Then add 451,500+ 313K=765k then the percentage limits applies which would be 97% but that seems high/wrong if I can deduct 97% of mortgage interest from both loans combined?