My iPhone won’t update

iCloud storage has nothing to do with the amount of storage on your phone. You will need to free up some space on your phone to do the upgrade.

Here are some helpful articles that can guide you on how to free up storage space on your phone.

How to check the storage on your iPhone, iPad, and iPod touch

https://support.apple.com/en-us/HT201656

Manage your photo and video storage

https://support.apple.com/en-us/HT205703

Clear Other storage on your iPhone or iPad

https://support.apple.com/en-us/HT211686

annalisa136 wrote:

It’s also showing I have no memory left but my cloud storage is minimal

There is a huge difference between device storage and iCloud storage.

What's the difference between device storage and iCloud storage? - Apple Support