Unable to restore backup due to insufficient storage

Howdy,

I recently attempted to update my 2nd gen SE from ios 16 to 18. I only had about 2 out of 128 GB of free storage, so I used iTunes to download and update my phone. This must have overwhelmed my phone because it was stuck on the white screen that says "press home to update," and when I pressed home and unlocked my phone, it would immediately crash and restart. Apple support online advised me to take my phone to a Best Buy which I did, and they did a factory reset. However when I try to restore my backup (which is on my PC, not iCloud), iTunes returns the message that the phone has insufficient storage. Looking at the backup file on my downloads, it appears to be 158 GB. Any advice would be appreciated. I would rather not use a third-party app to do selective restoring. I'm assuming an iCloud+ subscription would not help as the issue is with my device's storage capacity.