Hi, I am trying to swap this dumb switch that controls both the bathroom fan and light with a Kasa smart switch and I am having a hard time figuring out how to connect the smart switch's 2 black wires to the existing 3 black wires, which can be described as follows (see pictures) :

- 2 black wires enter the junction box from above (I assume 1 from fan, 1 from light), 1 from below (I assume hot wire from panel).

- 1 of the black wires coming from above is looped around the top screw on the side of the switch, and then bundled together in a blue wire cap with the black wire coming from below (hot wire), and the other black wire coming from above is squeezed under the bottom screw on the side of the switch.

Could someone explain the logic behind this existing configuration, and how I will be able to connect the 2 black wires from the smart switch to the 3 existing black wires (1 from fan, 1 from light, 1 hot wire)?

Also if possible, confirm if what I plan to do with the neutral and ground wire from the smart switch is correct based on my research :

- Simply put a wire cap on the ground wire and tuck it in, without connecting it to anything, as the junction box is grounded (see copper wires at the back of junction box) and the switch will be grounded simply by mounting it to the box (apparently that's ok in Canada).

- For the neutral wire, simply bundle it together with the other 3 neutral wires under the wire cap.

I would greatly appreciate any help, thanks!