can someone tell me why my final cut pro is extremly slow, even though i still have 350gb of space i am no using any programs and i am working with proxies?

it's extremely slow, I don't understand why this is happening

Answer the questions and implement the suggestions to eliminate the cause of the slow speed.

Q1: What version of FCP is it?

Q2: Take a backup of your data →Delete the FCP settings (hold down option+⌘ while starting FCP) *Rest assured that the project and additional features will not change.

Q3: Select library →File →Delete generated library file →Delete rendering file →All

Q4: Settings →Playback →Uncheck background rendering

I am scared to restart my final cut pro because I have invested so much in plug-ins, luts, transitions, and effects so I am scared they will go away

It's scarier to continue to be affected by old and corrupted data without rebooting.😅 If your PC is old, it needs to be diagnosed.

Q5: Please post your EtreCheck report(Added to text). What is EtreCheck: Using EtreCheck

In addition to what has already been said...

Your mac is more than powerful to handle this and so much more.

Since you are experiencing serious problems, two likely possibilities come to mind:

1) One or more of these plugins may be faulty or incompatible; or

2) Some other software problem.

Did you migrate everything from a previous mac? That is a common cause of problems, especially when subsequent upgrades have been going on for many years. It's not uncommon for people to upgrade in place and migrate from Mac to Mac, so that your system may have extensions from the Yosemite or El Capitan era...

Also, some types of software are poison to video applications - cleaners, antivirus, Chrome...

Please run Etrecheck and post its full report here. Use the "additional text" button and paste the report into the text box.

I just do not want to loose any external lits, plug ins and effects, would that solution keep all of those intact?

If a problem occurs, please get into the habit of deleting the FCP settings without continuing editing. As mentioned earlier, projects and additional features will remain in place unless you intentionally delete them.

Have you set up Time Machine? If you haven't done so yet, please set it up immediately using an external SSD. TimeMachine allows you to go back to any date and time you want.

If you feel like you've lost something after doing everything I suggested, you can use TimeMachine to go back to yesterday and return to a slow MacBook Pro as if nothing had happened.😅

When you delete FCP settings, a new folder will be created on your desktop. It will leave the previous settings in the folder, so you can restore the files you need later.

I have deleted settings many times, but the only files I can restore are the two layout presets. I'm putting it back manually. The environment settings will return to default and you can readjust them to your liking, which should take less than a minute.

Kernel panics can indicate hardware problems, either with the Mac itself or attached devices. Also, you have CleanMyMac installed, which is a known problem for the ProApps. Many here consider it malware.

Start by completely uninstalling CleanMyMac. It's possible it has damaged your operating system and a reformat and reinstall is necessary, but start by completely removing it.

Remove all external devices and see how FCP behaves. If it's better, start adding your external devices and test.

You have several T7 drives connected to a USB3 Hub.

I'd try connecting them directly (of course not all at the same time) to make sure the hub is not contributing to or causing the problem.

You also have what appears to be a pen drive. I wonder if this being USB2 only may be lowering the bus (perhaps due to some issue with the hub). So it may also be worth experimenting with this drive not connected.

Your plugins are NOT STORED IN FINAL CUT PRO so you cannot lose them whatever you do to FCP.

Delete the settings (also known as Preferences) as Alicia told you.