I am being asked to updated update to correct information on this W2, but this W2 appears to be combining mine and my spouse's information. How do I fix this?

Let's be clear on whether you are using the term "W-2" correctly first.  A W-2 is the document you receive from an employer showing the amount earned and how much was withheld from your paycheck for Social Security, Medicare, etc.  It is also called your Wage and Tax Statement on the top.  We see people referring to their tax returns as a "W-2" and it can get confusing to figure out what you are asking about.

https://turbotax.intuit.com/tax-tips/irs-tax-forms/what-is-a-w-2-form/L6VJbqWl5

A W-2 cannot have two names on it, or information for two different people.  If you entered a W-2 for yourself or your spouse and somehow confused the data you entered, delete the W-2 and start over on it.

A tax return---your Form 1040-- can have income information for two people on it when a married couple files a joint return.  Each spouse's income is entered on the income screens and you need to be careful to enter the income under the correct spouse's name on the screen.