With Big Sur (I think this started back with Catalina), what you see with the collection of different volumes and containers is the "new normal." It's actually very organized and everything is there for a reason. Your files are all in Macintosh HD - Data but when you are using your Mac, the OS makes it look to you like they are on Something called Macintosh HD, like it always used to me.
The actual Macintosh HD holds the operating system now, in a snapshot of that name.
I wouldn't worry about any of those details, but what you describe sounds normal.
As for upgrading the HDD, I would give this some thought because a 2015 iMac is probably nearing end of life. That said, I am using one that seems healthy still, and until a few months ago had been using a 2008 iMac but its power supply failed and that was that. I would replace the fusion drive with the largest internal SSD you can afford. That's what I did with my 2015 iMac, I'm very pleased with it. For this, I would have an Apple Authorized Service Provider do the work, I think for most people it is not straightforward.
A different approach would be to leave the fusion drive where it is and use it for storage or for alternate MacOS boots, and instead follow Jack19's instructions here Use an external SSD as your startup disk … - Apple Community which explains how you can set up an external SSD to use as your main boot drive. One attractive thing about this approach is that no surgery on the iMac is needed, and many commercial external SSDs can be used for this. The additional storage from your original fusion drive is a bonus too.