Why is my macbook reading cloud files as taking up space?

I'm unable to update my computer because of lack of space. When I look up my computer's storage, it says there are 38GB of documents, however when I get the info for my documents folder or any other folder that could be considered documents, the total on disk storage is less than 50 MB because everything is uploaded to onedrive. Any help with why my 2019 macbook air is reading it that way? Currently on Catalina 10.15.7

Thanks