I would just sand the seam to the same level as the backer board. if you still have 2-3 inches of the backer with no mud on it, you will still get a good bond with the thinset. you just need to dand enough so thst the tile will be even and level with the other tiles on the wall. you should leave a 1/8+ gap on the drywall side to fill with grout. make sure to seal and paint the drywall prior to tiling as this gives a neater transition from tile to painted surface
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