"1- to do 1040X to amend 2022 to undo the excess reported in 2022 and submit that online. I think I will need to amend 5329 as well to show that there is no excess in 2022."
You will want to amend the 2022 return to get that 6% penalty back. You will need only to change your entries in the HSA interview to show that you didn't have an excess after all. The 5329 should take care of itself.
Note that if you want the new carryover (or lack thereof) to appear on your 2023 return, you'll need to transfer the 2022 return to 2023 again. Since that would delete any entries you have already made for 2023, you may want to try the two suggestions in #2.
"2- Then I can submit 2023. What I am not sure is how to report that in 2023 (should I put ZERO as the excess contribution from 2022 to fix things since I will do the amendment first for 2022)"
When you go through through the HSA interview on your 2023 return, you should be asked something like, "Did you overfund your HSA in 2022?" First, say "no" and go through the return to see how it turns out. Hopefully that will do it. Otherwise, go back to the HSA interview and answer "yes, then put "0" (zero) as the amount of the carryover and go through the rest of the return, to see if that worked for you.
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