can I avail of the Section 121 capital gains exclusion
I addressed this earlier. No, you do not qualify for the capital gains exclusion, because you did not sell the entire property in a "fully" taxable transaction. Your name as owner is still on the property deed. Therefore, you "will" pay taxes on any realized gain, regardless of how that gain is realized.
The only possible way to qualify, is if you sell the property now and close on the sale before the end of the 2022 tax year.
