MacBook Pro 2016 storage full--application and system numbers seem wrong

My SSD on my MacBook Pro 2016 running Monterey is always almost full. The numbers when I check storage or go to manage storage are very different than when I look at the actual folders.

The biggest users of storage according to the summary are applications and system, taking up almost 200 GB:

• Applications says 118 GB
• System says 76 GB

But the numbers do not add up at all (see screen shot).

When I look at these folders, the numbers are more accurate (see screen shot):

• Applications folder says 17 GB
• System folder says 29 GB

The other numbers pretty much make sense.

It's driving me crazy, and I cannot upgrade the storage, and I do not want to purchase a new computer (which would only have 500 GB anyway) just because of this issue.

Thanks for any help with this!