Trouble installing iPadOS 17.0.2?

You might be best advised to seek assistance directly from Apple Support. You can contact the Support Team using the Support link at top-right or bottom-left of this page. Alternatively, you can initiate and manage your support cases from Apple devices using the excellent Apple Support App. If not already installed, the App can be downloaded from the App Store:

https://apps.apple.com/app/apple-support/id1130498044

You might also visit the Genius Bar at your local Apple Store or Apple Authorised Service Provider (AASP) - where the technicians will be able to provide assistance:

Genius Bar Reservation and Apple Support Options - Apple

System software updates are compressed. They must be downloaded, unpacked/decompressed and verified before installation - and this requires adequate free-space to perform.

During the update, temporary files will also be created - also requiring free space. These temporary files will eventually be cleaned-up after the update has been successfully installed.

It is generally recommended that you keep at least 4-6GB of internal storage available for iPadOS to be able to function.

The graphic that you illustrate shows the space used for storage of the OS alone - and excludes temporary data/files.

I was in panic for several minutes but luckily i have a windows 10 machine. i installed the latest iTune and it detected my iPad needed fix. it downloaded the update or whatever it was about 6GB and installation lasted for 10 minutes. I was wondering entire time if its going to wipe out my iPad completely to make it work but it seems it retained all my apps and everything intact. O my God what a wind whirl and a relieve. IPad shows 17.0.2 installed.

I have the exact same issue. More than enough storage for the update, download the update and it says unable to install requires at least 5GB. It also increased how much storage was available on my device after attempting to install just like you.

You're very welcome.