(1) That's a little spooky -- you've got many GB free on C:, yet it refuses to shrink by 116 MB! Mine shrinks by that amount very nicely. I guess...
(a) Right-click C: in File Explorer, & select Properties.
(b) At the Tools tab, first do a Check.
(c) Then do an Optimize.
If the Check finds something serious (I've read), it will reboot to do it while offline. If all goes well, try to Shrink C: again.
(2) Why did your last Backup & Restore go to two SSDs?
(a) Were they tiny SSDs?
(b) Did you include all those extraneous drives in the image?
(c) It might be good to unplug the extraneous drives, then make an image.
(3) Can you open WindowsImageBackup & show me the VHDXs as requested?
(a) I think I want to mount the EFI in there & try to see its BCD.
(b) Also, we can count the VHDX files. Any number over three (EFI, Windows, Recovery) would mean you've included other, non-system partitions.