System Data Over 700GB Large

I have a theory but nothing to back it up. I think some of system data is the SSD memory that has not be cleared back to writeable state by the garbage collection. So, when you delete something, the space doesn't actually open up immediately.

Also, in case you didn't find a definition for "System Data," it's not a defined category. It is what is not a defined category. Everything Spotlight cannot kludge into the other categories gets labeled, "System Data." It used to be called, "Other." Some of it is actually system data, but some of it can be your data that Spotlight couldn't recognize.

Sometimes, you can resolve some of it by reindexing Spotlight since it is the thing that is making the categories.

Rebuild the Spotlight index on your Mac - Apple Support Just drag in Macintosh HD, then remove it.

I also think Local Snapshots are System Data. If you have Time Machine set up, but haven't connected a drive in a while, you could be building up local TM snapshots. I run that way for several weeks at a time and don't have excessive System Data, though.

When it doesn't resolve to a reasonable level, that's where the disk storage programs can be useful.

There are a couple of safe tools to use to look for large runaway cache or log files. I don't know that I would trust anything to delete, but these two tools show your the files and you pick what you want to delete. Or, you can just go find them in Finder and remove them if you want. They don't just search for all matches of a name and delete willy-nilly.

Grand Perspective -- I like this one because of the graphic display of storage.

OmniDiskSweeper

I haven't run either on Ventura or Sonoma.

Never ever install Third Party Disk Cleaners or Disk Optimizers

It they were safe to using on macOS - probably Apple would include some type of an Application built into the Operating System

Manage Storage

It is generally a good computer practice to alway keep at least 20% to 25% of the Total Drive Capacity’s as Empty Space.

Allowing the computer to drop below these guidelines may eventually, cause unintended consequences.

There is Purgeable Space and there is Empty Space.

Purgeable Space which is Controlled by the Operating System. When the Operating Systems decides the computer needs additional Empty Space, it will move a portion of the Purgeable to Empty space

AFAIK - there is no User Actions to hasten this transition from Purgeable to Empty Space

It can day or longer before this will occur.

The links below will assist in identifying what is taking up space on the Internal Drive and provide possible ways to remove data that is under the direct control of the User ( Home Folder ) . 

Rebuild the Spotlight index on your Mac

What is “Other” storage on a Mac, and how can I clean it out?

Free up storage space on your Mac

GrandPerspective 

How to delete Time Machine snapshots on your Mac.  

Often caused if the Time Machine Drive has not been attached  to the computer and TM Backup is set to run on a Schedule. 

TM Backup will make Snap Shot on the Internal Drive awaiting the TM Backup Drive to be attached. 

Only then will the Snaps Shots be transferred to the External Drive and deleted the Internal Drive.

See used and available storage space on your Mac

Locate backups of your iPhone, iPad, and iPod touch

Is there a Suite of Adobe Applications  used on this computer ?

They may create some very large cache files that can be removed. Though, the Adobe cache files will be recreated as the Applications needs them.

https://helpx.adobe.com/ca/premiere-pro/kb/clear-cache.html

The final word from Apple on Managing the " Other/ System Data “ Category

Other / System Data: Contains files that don’t fall into the categories listed here. This category primarily includes files and data used by the system, such as log files, caches, VM files, and other runtime system resources. Also included are temporary files, fonts, app support files, and plug-ins.

You can't manage the contents of this category. The contents are managed by macOS, and the category varies in size depending on the current state of your Mac.

It is my understanding that the app storage numbers include the data created by the app.

I don’t know if there is any linkage to a particular folder, though.

There might be app or company folders in each Library/Application Support folders.

Sorry was a little late with much the same advise as yours ☺️

I don’t know what the .crc package is.