Charging Macbook Pro with lower wattage from display is bad for battery health?
Charging the MacBook Pro with the lower wattage from the display is not bad for your battery health at all.
There's also nothing wrong with the computer consuming more energy than the charger delivers when under heavy use. It won't damage the battery nor the charger. Ofcourse it will eventually discharge the battery so that you need to lower the energy consumption in order to actually charge the battery.
Note that a MacBook Pro does not usually use near 97 watts all the time when in use. It is usually in short bursts if at all.