Remember that I wrote: "NOTE: each spouse can have an HSA. The use of "you" below refers to whichever spouse's name was in the question above." So the text below that point referred ONLY to your spouse.
HSAs are owned by the individual, so it makes no difference what your coverage was.
So, what HDHP coverage did your spouse have on December 1, 2021? From your post, it seems that your spouse had Family coverage (because you two shared it). So none of the possibilities I listed above are for your spouse. Therefore, your spouse should enter "Family". Then your spouse will go through a number of questions to determine how much your spouse would have been allowed to contribute without the last-month rule - because your spouse did not have HDHP coverage for all of 2021 but did have coverage on December 1, 2021, your spouse used the last-month rule such that your spouse was able to claim the full annual HSA contribution limit, but with the condition that your spouse stayed under HDHP coverage for all of 2022 (which your spouse obviously did not).
However, you may or may not have to pay a penalty, but you won't know until your spouse answers Family and completes the interview.
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What do you mean "TurboTax is changing the limits"?
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