I don't understand this: "does it go in other income or is it added to wages like the 1099 R process?"

You don't add a 1099-R to Wages. If that applied, it would happen through the employer.

You never gave any details. Were the HSA contributions made through an Employer as Payroll? Or, by the taxpayer personally, outside of employment? Are they removing it or allowing it to be for 2022?