Yes, you will need to amend your 2024 tax return and switch the non-deductible traditional IRA contribution to an excess Roth contribution. And, yes it will be subject to the 6% penalty, which is $420 on the $7,000 contribution. This will also amend the Form 8606 for 2024 to show that it was not a non-deductible traditional IRA contribution.
Because you missed the filing deadline to make a corrective distribution for the 2024 contribution, and the funds were still in the account for all of 2025, you will also pay the 6% penalty for 2025 - the screenshot of the form 5329 that you sent is correct.
To avoid getting the 6% penalty for 2026, you can withdraw the original contribution of $7,000. You won't have a 10% penalty on the distribution because of IRS ordering rules for Roth IRAs: Contributions are the first funds to be withdrawn from the IRA and they are always free of taxes and penalties. You'll get the 1099-R for that early in 2027 to report on your 2026 tax return.
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