Sedentary or Lightly Active???

I put sedentary though I run or do some other cardio 60 min x6 week and then 3-5 miles 7x week walk with dogs. This comes out to two hours to two and a half hours exercise a day(except on my one rest day--just 1-1.5 hours... unfortunately, walking is just part of dog ownership)I just add in my exercise manually and works for me. I know I'm not double dipping or overestimating my calorie needs at all.

The activity setting on MFP doesn't take into account any "exercise" activities. So someone working a desk job in an office environment, but also training intensely and daily for an Olympic ironman, would choose sedentary (or maybe lightly active) and then track exercise in some form.

From your description sounds like you could choose sedentary or lightly active. Go with either one. They are both just estimates for the general population. Everything is an estimate (some easier to get close to right than others, but it's all still an estimate).

Pick one, track how it is working out for you over the course of a couple of months, and reassess whether you want to make any changes.

Anything can be a workout of sorts--just because you don't put on shorts, a sportsbra, and sneakers doesn't mean you're not exercising. Log those activities too. See if you can find a
pedometer to measure your steps per day or even a fitbit.

So you do no exercise at all then?

Because you selected sedentary on a site that does TDEE, which means it includes exercise.
And those rough 5 level charts are usually bad underestimated UNLESS you actually include exercise, and even then, can be too.

Don't make the tool more difficult to use since you aren't exercising, just use MFP's method, select sedentary, and reasonable weight loss goal amount.

I show your sedentary TDEE about 1780, what MFP use.

If you actually do exercise and want to use MFP's method, then no need for manual goal, just select Sedentary as suggested.
Log your exercise honestly, and eat back your exercise calories to maintain that deficit.
And reasonable deficit with perhaps 54 lbs to lose would be 750 or 1.5 weekly - if you exercise 4-5 days.

But strongly suggestion you include strength training in that case.

I'm betting that's your current issue - from past efforts you've burned off some muscle mass you are really missing now, besides probably eating way less than you should have the entire time.
Your input has actually changed your output - you know longer burn close to what the calculators are estimating for a healthy body - because yours isn't. Which means Fitbit will be wrong too, because that's exactly what it does also.

My wife is a stay at home mom and she and I discussed this as some days she is sedentary and others active. We ended up getting a pedometer (fitbit one) so it would automaticlly adjust her calories based on her steps. I would recommed setting it sedentary and getting a waist/pocket based pedometer, let it adjust for minor things like your chores and general walking but still log major excersizes like running.