The immediate issues are hight-lighted in Bold.
1 - The Antivirus Avira is totally not needed and should be removed as per Developers Specific Instructions. It may be causing tour issue. There are no known Windows-like Viruses in the wild that self replicate and affect macOS, because of the underling UNIX Foundation and Permission Limitation.
2 - Running a VPN while doing a download of a Major Sized Big Sur 12.24 GB download - not suggested. The VPN may contribute to packet losses and corrupted downloads.
3 - Yes the drive has the space but getting low. It is usually suggested to alway keep 15% of the Drive capacity as Free Space. In this case 15% of 256 GB is about 38.4 GB as Empty at all time.
4 - The Battery is over the suggested Full Cycles of 1000 before needing Service. 1647 Cycles is almost Double
Below from the Etrecheck Report
Avira Security.app
Duplicate File Finder.app
Antivirus software: Apple and Avira
CactusVPN (Sergiu Candja - installed 2021-07-20)
Application
/Applications/CactusVPN.app
250.79 GB (Shared - 11.08 GB used, 57.18 GB available, 48.15 GB free)
High battery cycle count - Your battery may be losing capacity.
Battery: Health = Replace Soon - Cycle count = 1647
Kernel extensions present - This computer has kernel extensions that may not work in the future.