OP is entitled to a refund to his original form of payment. However, Booking.com wants to process that is irrelevant, e.g. direct to the card or to the wallet and thence to the card.

If 6 weeks have passed since the property or OTA cancelled your reservation and you have not yet been advised that the credit has been initiated and it does not appear on your card, you should immediately initiate a chargeback.

Your chargeback should be much more precise and include the relevant emails and documents:
1. Copy of booking and charge showing the $2,300.
2. Copy of cancellation notice(s).
3. Copy of your request for a refund to your card.

In your narrative, make it clear that you are not looking for a credit from the property or hotels. com, but rather a refund to your card. Don't use terms such as "wallet" as they are confusing.

No reason for you to make interest-free loans.