New Mac Studio, HUGE System Data

I just got a new Mac Studio today with 1Tb of storage. After setting it up and then doing migration from a backup drive, not using Time Machine, I now have well over 900Gb of System data hogging up the entire drive.

I have run First Aid on all the partitions but nothing has been cleared. I have restarted multiple times hoping that will clear it up. Nothing.

I have checked the Library folders, both System and User and there is nothing there taking up so much space.

Looking at Disk Utility, there appears to be an extra container. My MacBook Pro does not have all these containers.

How can I correct this? Or, do I need to just to restore the computer back to factory settings and start over?

[Edited by Moderator]