I had over $3,000 capital loss why is it only using $265 capital loss?

Is that all that is showing up on 1040 line 7?  Maybe you used up more of it this year or last year.  Or is the 265 showing on the income summary screen in the 2022 column?

On the income page The 2022 column shows the carryover to 2023 (not your current loss for 2022).  Schedule D doesn't actually show the carryover amount. To find your  Capital Loss Carryover amount  you need to look at your  return schedule D page 2.  Line 16 will be your total loss and line 21 should be a max loss of 3,000.  The difference between line 16 and 21 is the carryover loss for next year.

There is also a Carryover Worksheet showing the carryover from the prior year and the current amounts.  Then there is also the Capital Loss Carry Forward worksheet showing the amount transferring over to next year.

In the Online version you have to save your return with all the worksheet as a pdf file to your computer to see the Capital Loss Carry Over and Carry Forward worksheets.

In the Desktop program you can go to Forms and find it in the list in the left column.

What do you mean by "using"? Using for what? On what form and line number do you see $265? Don't look at a summary screen in TurboTax. Look at the actual tax forms.

Did you have the $3,000+ loss in 2022, or do you mean that you had a capital loss carryover from 2021? VolvoGirl thinks you are talking about a capital loss carryover?

What are the exact amounts on Schedule D lines 6, 7, 14, 15, 16, and 21. What is the exact amount on Form 1040 line 7?

What is your filing status?