I have not tried to reformat due to fear of losing documents and photos etc. Did think of restarting with procedure to reinstall most recent system. I have like you, 2 APFS volumes which are marked HDD1 with 384.4 GB and HDD1-Data with 384.4 GB, not sure how I managed that. Also when I tried to back up via time machine to an external HD it started to back up another 384.4 GB ! Just not sure what the heck I have managed to do. Might try to use icloud to save some things or an external hd and then take the plunge and start afresh.How did you try to reformat your Time Machine drive?
When I run disk utility on a Mac with Catalina or newer, my main disk shows 2 APFS volumes, "Macintosh HD" & "Macintosh HD - Data", but my Time Machine drive shows as one UPS External Physical Volume. I also have a SSD drive that is an APFS Volume that has Mojave on it (I will reformat it after my one necessary 32-bit program is converted, supposedly this Spring). My Time Machine drive is formatted as MAC OS Extended (Case-sensitive. Journaled). It's 4TB, while my SSD is 1TB, I don't need it to be fast.
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