I’m not sure what is going on with your diagram. What is External 2 and External 1? Why do you have R and C connected? Why are W and Y connected?
Assuming external 1 is the outdoor A/C compressor, and external 2 is the thermostat, your wiring is incorrect.
External 1 (the A/C compressor) should have a red wire connected to C before the adapter and a white wire connected to Y before the adapter, like in my diagram. External 2 should be directly connected to the output of the C adapter, with the Red wire on R, the Yellow wire on Y, the Green wire on G, and the White wire on W.
The external are the lines leaving the air handler.
Presumably to compressor and thermostat. I don’t know which is which.
I labeled them generally External 1 and 2 because I wasn’t sure which was which. Each external is a set of thin wires sheathed together and separated inside my air handler in the garage.
As far as why are things setup like that? That I do not know. That is just the way it is wired now. I double checked it. And that is why I showed the caps. It is super confusing.
R&C - cap 1 connects these two. If you see in my prior diagram where you labeled “C”, that is the “R” wrapped around it coming from the first External set of wires.
However, at Cap5 there is another “R” coming in from the second External line.
You should look at it again. there are only 5 wire nuts in the picture you posted. one has some red wires in it( R). one has several green wires in it (G). one has a black and some white wires in it (W) one has a brown and red wire in it (C) one has a 2 yellow wires in it and a white wire (Y)
Your mistake is thinking that all the colored wires are the same thing. The colors are irrelevant. Their location tells me what they are doing. The “second line” (external 1 on your diagram, A/C compressor on mine) is your outdoor unit for your air conditioner. It is connected across C and Y. The colors of the wires are shown on my diagram to indicate the colors of the wires, but you can see the names of the terminals are in fact C and Y, even though they are a red and white wire. You might think that all Red wires are R, but this is not the case.
The black wire between the 2 R wires is just a cut out switch that turns off power to your furnace if the drain pan below your evaporator floods. Cap 5 is R in this case. You would take the red wire out of cap5 and connect it to the R terminal on your C adapter, then connect the R wire from your adapter to the black wire in cap 5
Again, thank you so much for even going this far with my questions. And for tolerating what I’m sure is frustrating for someone who knows explaining to someone who doesn’t.
What I’m struggling with is what wires to move to where?
1 - take cap 1 - red and connect to wyze adapter R input
2 - take wyze adapter ribbon cable R and connect to cap 1
that is where I’m trying to get to so I know what I’m doing before I start changing wiring.
With your diagram I am confused between the purpose of the wires (i.e. R, G, W) and the colors of the wires I’m seeing (red, yellow, green).
In some cases it is obvious, but as you can see from the coloring, there are duplicates of colors which makes me question whether I understand the intent of your diagram correctly.
The colors are not the same as the terminal labels. It’s why I show both the names in my diagram (to show what each terminal is in a device, and show the actual wire color for the wire.
Example: the G wire from your furnace is green and black. At the thermostat it is only green. In both places it is a G (fan) wire, until you run it through the C adapter. Then the C adapter turns it into a C wire.
The adapter’s terminals need to only be connected to the wyze’s thermostat wires, because it changes what the wires do in order to use the Y wire to control both the A/C compressor and fan, thus giving you an extra wire for C to travel to the thermostat on, without needing to run a new wire set. If you connect the wires that run to the A/C compressor to the adapter’s terminals, and not to the ribbon cable side of things, then your outdoor A/C compressor will see the fan signal as a call for cooling, and it will run when you have the heat on.
Cap 1 is C, because it has a brown wire coming from the furnace board that is labeled C in it. The red wire that goes to the A/C compressor does not make it into a R wire, it it just a C wire that happens to be red.
And looking at your new picture, I can see a new detail that might result in you not needing to use the C adapter at all.
Look behind your current thermostat. Do you see a blue wire?