deleted files on iCloud but it won't update status of it

It sounds to me like the deleted items are being repopulated in iCloud Drive from your internal drive. If yes, you will have to purchase more storage or disengage from iCloud Drive. If you chose the later alternative, be very careful. It is not always that easy to disengage. If you want to buy more storage, go here: https://support.apple.com/en-us/HT201318

As mentioned, your other option is not to use iCloud Drive. To do so, you would need to backup all your files in your Documents and Desktop folders. You can do so by creating folders in your Home folder not using either of these names and moving the files there. For extra safety, I also would back them up in the same way on an external drive. Then, uncheck iCloud Drive on all your devices. You may see a message that the files involved will be deleted from iCloud and your device. But, that is OK because you would be well backed up. I am assuming and hoping that you have never optimized storage on your Mac. If you have, the process might be a bit more involved. After all the fireworks are over, you can choose whatever iCloud storage level you want.

I agree that iCloud should provide more options. As things stand, users end up having to increase storage rather that to be able to chose options over time that would prevent such increases. If you are well backed up, then why not just turn iCloud off. I can't understand why you need iCloud for iTunes, etc.

By the way, do you understand that you are not talking to Apple or an Apple employee? I am a user just like you trying to help you.

Deleted files are retained for 30 days so you can recover them. If you want to recover the space sooner than that, after deleting the files, try going to iCloud.com/iCloud Drive using a computer browser and click on Recently Deleted at the bottom right. If there are files there you do not need, delete them. Then try iCloud.com/Account Settings using a computer browser and go to Advanced at the bottom left. Access Restore Files. If there are files there you do not need, delete them.