Why is my phone storage full when I have 2 Tb of iCloud storage?
Why is my phone storage full when I have 2 Tb of iCloud storage and have used only 114 Gb of it?
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Because the iPhone storage is full, and it is not related to your rented cloud storage. If you need additional space on the device, you will need to delete or move existing content.
What's the difference between device storage and iCloud storage? - Apple Support (CA)