+1 Puch is rock bottom with bottom of the barrel parts. It does not have good parts on it.

TLC bikes are often the best deal, IF you have the time/tools/aptitude/interest in doing the work yourself. If not, they quickly become a bad deal. Paying a bike shop to do a rehab can cost you $200 to $250, or even more if there are any issues.

Entry level mixtes in ready to ride condition bring about $150 in a good market, add for Peugeot and a hotter market like DC, and you have the OP price. Not the deal of the century for sure, but probably realistic. If it is still available on C/L, that's a signal that you should be thinking of making a lower offer, maybe something like $175 to $190.

MTB bars and controls on that Fuji, ugh... No thanks. If you want to return it to its original state, you are going to need a box of parts: handlebars, brake levers, shift levers, stem, etc. That's a lot of money if you have to buy that stuff.