In the ‘living room’ box there was a 14-2 line wire coming up from the breaker shown in the bottom right corner. This was powering another switch in the box. I added a wire from the line of the switch to the black-black connection. Then wired our 14-3 cable as shown in the line/load separate boxes(neutral wire setup). In the ‘other’ box, the 14-2 cable in the top right went to the load so i attached the black to the dumbswitch common and wired the red and black from the 14-3 cable as shown in the diagram from the Line/Load separate box (neutral wire setup). The 14-2 cable coming into the 'other box previously acting as the line for both switches was disconnected and capped off.
All is working as intended now from the inovelli and dumb switch in the 3 way. It was confusing for sure. Appreciate the help and made me dig into it a lot more than originally comfortable.
Edit: it was indeed working with all the other switch combos.