You only report the excess deferral amount on your 2024 return, the earnings are reported in the years of distribution, in your case in 2025. Yes, you reported it in the correct section and you should see it on line 1h of Form 1040.
You do not change your W-2 entry, you can ignore the warning in TurboTax since you took corrective actions.
Please see Pub 525 for additional information.
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