How to reduce 'System Data' usage on Mac mini M1 for more internal SSD space?

Adam_Electric wrote:

.. i wish there was a way around to fix this i do need more space..

There is, but to really understand your storage, you need to get past the Mac's built in approximate and non-specific utility and use a commercial tool (e.g. not free). One example that I am familiar with and use is Daisy Disk. If you run it as Administrator, it will drill down and show you where every GB is on your Mac. For me, it identified some old iPhone backups, some device updates for an iPhone and for a Garmin device, and a downloaded map for the Garmin device. I was able to delete over 100 GB. My daughter used it (the license allows for use on several Macs) and she found some old Lightroom catalog backups and removed nearly 200 GB. "System Storage" is a catch all for a hodge podge of files, some of which you can control (e.g. delete), some of which you cannot. You need a tool that more clearly identifies what comes from what.

There are free tools that some this also but they are not as easy to use as Daisy Disk. Daisy Disk will drill down to hidden as well as true system folders that the user should not touch, so that is a danger, that the user might delete something that should not be deleted.