I am not sure that people associate a drop of price while a house is continually on the market with something negative, I think they associate it with the price being too high to attract a buyer at that particular time frame.
What does get attention, I think, is if the house is off the market because of a pending offer and then comes back on the market at a lower price. I think people associate that with something like "ah, the offer fell through because there is something wrong with the house, so they had to price it lower". (Whether this is true or not).
As for the wildly fluctuating Zestimate, that may have as much to do with comps or other variables as it does anything else. I periodically check the estimates on my house and it has fluctuated quite a bit, during some periods. And different companies have different estimates, sometimes quite a bit different from each other.
Unfortunately I think with the whole staging industry, houses are turned into literal Potemkin Villages, and people have their heads turned by the surface cosmetics, and even the way the staging decor is done. You may have done a lot of the stuff that isn't fun, and pretty, but that's the kind of stuff that a lot of people don't notice, they just assume somehow that of course all those things are all right.
Q
Everything
Q