Yes, the excess deferral will be added to your 2022 wages but the returned earnings will be reported on your 2023 return. Next year you should receive two 2023 Form 1099-R, one for the returned excess deferral with code P and one for the earnings with code 8. You can ignore the 2023 Form 1099-R with code P (which belongs on your 2022 tax return) since you already reported it. But the 2023 Form 1099-R code 8 for the earnings will need to be reported on your 2023 tax return.
The warning of the overcontribution is triggered by the W-2 box 12 entry but you took corrective actions and therefore you can ignore the warning. For excess deferrals you won't get a penalty calculated and therefore you can ignore the warning.
@SJH57
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
