My HSA contributions for 2024 was $2,950 but when filing my taxes it says that I overfunded my HSA by $1,700 and need to withdraw this amount before April 15, 2025.

Are you manually entering your HSA contributions made through payroll in the HSA entry in TurboTax? If so, you shouldn't do that as you will be double-counting your contributions since it was reported on your W-2 Box 12 Code W. ‌You also need to make sure you have indicated you have a high-deductible health plan all year. 

According to Why am I showing an excess HSA contribution?, the 2024 maximum for both employer and employee HSA contributions was $5,150 if you were 55 or older at the end of 2024 and are covered by an individual (self-only) HDHP. ‌If you were older than 54, check these entries:

• Click on Federal Taxes,  Deduction & Credits
• Choose "add/edit" HSA, MSA Contributions
• You will see a page titled "Your HSA Summary" which will show any deductions already computed from your W-2  
• Choose Edit, Check the box for HSA, Continue
• You'll now see a screen that says "Here's what we have so far" with the information from the 1099-SA, choose "Edit"
• After the entry screen for the amount distributed, $4,202, continue and when it asks "Did you spend your HSA money on medical expenses only?" answer "Yes", if accurate. 
• Choose done and continue until you get to a screen that says "Let's enter your HSA contributions"
• In the box "Any contributions you personally made (not through your employer)" DON'T enter the amounts you contributed through paycheck withholding. It has already been considered through your W-2 entry.
• Continue on, and if you were covered by Medicare, you will need to indicate what months this was the case, as your contributions will be limited.
• Next, you will be asked if you were covered by a High Deductible Health Plan (HDHP) in 2024? You need to have been covered the whole year to be allowed to make the maximum HSA contribution