What is the best way to do a clean install for my M4 Mac, for my purpose?

The problem with a total do over, is that Migrating from Time Machine is basically an all or nothing proposition.

One way to free up some disk space,

is to take the time to manually delete old App's and File's that you no longer use or need.

Another way to free up a lot of disk space,

is to move the larger of your Photos, Music or Movie Media Libraries to an external hard drive.

Move your Photos library to save space on your Mac - Apple Support

Change where your music files are stored on Mac - Apple Support

Move your iMovie for Mac library - Apple Support

Believe it or not, deleting rather than doing a pick and choose install is far less tedious.

And no, I was dead serious. When you get to 10% of space left (about 50GB) expect the system to lock up. We see that all the time where people indicated their computers won't start because of insufficient storage space. Mac OS needs headroom of about 10% of total space in order to operate well.

Back to your thoughts on doing an erase and install. Of course it is your computer, so if you would rather doing a pick and choose install you can of-course but if I were in your boots I sure wouldn't. That's just my opinion and what most experienced users on these forums seem to agree on.

Also, den.thed is correct about moving large libraries (photos, music, movies) to an external drive to free up internal storage. I've been using that practice for about 20 years and it works perfectly. This is much much easier than anything else suggested. Apple explains how to do it in Move your Photos library to save space on your Mac

You're welcome.

Nope' The last thing you want, is some third-party App that falsely clams it can do that.

When Apple decided to hardwire memory and storage I was stuck with an old MBP with an 1TB drive I'd upgraded to and the prospect of paying a huge amount to upgrade a new MBP with the same size drive. Instead I looked to trim - viciously.

The first thing I did was ensure that I had 2 good TM backups because my intent was to begin erasing and moving files off my old MBP. My idea was this: There was stuff I didn't need but just in case, I wanted to have a safe copy. One of the 2 TM backups was designated Archive and I'd never backup to again. Its role was to hold everything "just in case". There was stuff I wanted to keep but didn't necessarily need to carry with me every day. These files I copied to a small portable drive and erased from my MBP. In the end, I had my MBP pared down to just under 400GB and I spent several months using it and making adjustments with some files moving off and some moving on. During this time I was backing up to a totally new TM drive (didn't want to touch my pre trimming drives, just in case). Finally I was satisfied and when I purchased my new MBP with a 512GB SSD I had a TM drive ready to make the switch.

A long winded way of saying, make sure you have at least 1 good backup of now and then disconnect it from your computer. Remember, a TM backup is guaranteed to have your now files, anything you delete from your computer is a candidate for TM to delete. Now start removing stuff. The only safe way is to go thru files by hand and when in doubt, keep a copy on another drive.

It is MUCH wiser to delete what you don’t need than do a pick and choose install. By the way 67 GB is a dangerously low amount of free space!!!!