Running out of Space on my 256Gb HD Mac mini M1, but almost everything is on iCloud

I looked at some of the other posts about the huge "System Data" and mine is the same "143.1gb of system data"

outside of that says music 14.07gb, photos 24.14gb

I used Omnidisksweeper as suggested to drill down in other posts, here's what I found 41.41 GB in this file that basically seems like Caches. Can this be deleted without harm?

/Users/caseybarnes/Library/Containers/com.apple.mediaanalysisd

Also

85.3 GB of music /Users/caseybarnes/Music/Music/Media

I get it saves some for easier quicker access, but it is all also in iCloud.

I have an external drive so if there is an easy way to offload this music as well and have Apple Music point to that I would do that as well.

Thanks in advance. I would like to be able to do basic tasks and update my OS again :)