In addition to OWL-53's always perceptive comments about the drive structure (is this internal drive partitioned?), the report indicates
disk1s1 - Macintosh HD - Data [APFS Virtual drive]
Filesystem: APFS
Mount point: /System/Volumes/Data
Encrypted
Used: 642.19 GB
Shared values
Size: 744.00 GB
Free: 86.56 GB
...free space barely above 10% which is problematic with the MANY software apps running on this Mac, and with 16 GB memory there is no doubt a lot of paging to disk or "scratch space" needed by all those apps required, but that can be very slow when disk space is so tight (20% free is recommended).
I agree with den.thed that this laptop appears to be "overloaded."
There appear to be two VPNs, one from Malwarebytes the other Wireguard. Are these conflicting with one another? VPNs are actually a poor "security" strategy (unless provided for a specific corporate network).
Also a virtual machine is installed, maybe running. Depending on how configured, that can take a lot of resources, especially for a MacBook Air.
Also, Intelhaxm is installed and running. This is an accelerator package meant to accelerate virtual machines, among other things. Maybe questionable from the get go, support for Intelhaxm was dropped more than 3 years ago due to security concerns. Who knows if this package conflicts with Sequoia ...
Bluestacks ... installed ... another OS emulator for something else (Android?). Also dragging down resources on this laptop.
Museservice -- installed, this is some sort of tool for large music downloads. Probably a resource drain as well.
There are also some "executables not found" messages in the Etrecheck report which may indicate some software was improperly uninstalled, resulting in leftover pieces (kexts, extensions, background processes) still running in some disorganized way.