Because the correction was done long after the due date of your 2018 tax return, investment gain or loss on the $500 contributed for 2018 is irrelevant. Correct by distribution of the excess therefore requires that $500 be distributed as a regular distribution. With only $395 distributed as a regular distribution, $105 of excess remains in your Roth IRAs.
However, if you were eligible to contribute to a Roth IRA for 2019 or 2020 and made less than the maximum permissible contribution, some or all of the excess could have been applied as a part of your contributions for those years. If you are eligible to contribute at least $500 for 2021 but have already contributed the maximum permissible, you could obtain a return of $500 of your 2021 contribution, adjusted for gain or loss, to make room to apply the $500 as part of your 2021 contribution and eliminate the penalty for 2021. That would also make the regular distribution unnecessary.
Were you eligible to contribute to a Roth IRA for 2019, 2020 or 2021 and did you contribute the maximum for those years? That will determine what amendments you need to make. If you never reported the excess contribution with your 2018 tax return, you'll likely need to amend your 2018, 2019 and 2020 tax returns to include Form 5329.
