Don't confuse the amount distributed with the amount of contribution returned. They are not the same. The amount of 2021 contribution returned was the amount contributed despite the amount distributed being less that the amount contributed, leaving no excess contribution to be reported on the 2021 Form 5329.
For a proper return of contribution, the 2022 Form 1099-R reporting this distribution should have had codes J and P in box 7, the amount distributed reported box 1 and $0 in box 2a. Your 2021 tax return was required to include and explanation statement describing that the amount distributed constituted the return of the entire contribution adjusted for investment loss. Absent that explanation, the IRS has no way to know how much of the contribution was returned.
