@jsaluki
Yes, you can use qualified medical expenses since the account was opened to offset the taxes on the withdrawal. The penalties for making ineligible contributions are separate from the rules on withdrawals.
Ignore the issue of the monthly earnings. That is included in the amount you withdrew in December 2023 and will be taxable on your 2023 return unless you have qualified medical expenses. The earnings on ineligible contributions do not have to be tracked or reported unless you remove the excess contributions using the special procedure (which you did not). The 6% penalty offsets the earnings, that's all you have to do.
