Mac HD capacity wrong!

I have an M1 MacBook Air, I noticed i was running low on storage space. I went into disk utility and notice that Macintosh HD was 502.5GB which i though was strange because it’s the 1TB model. So i double checked yeah i purchased the 1TB model. After a bit of checking like “show all devices” the top of the stack shows “APPLE SSD AP1024Q media” capacity 1TB.

when i selected the Mac HD it still only shows the 502.5GB there isn't any other partition if i select it and check says size 1TB but the partition is 502.5 GB cant make it any bigger.

any help would be appreciated.

I feel like I’m missing something.