Final Cut Pro becomes homicidal and also damaged Library fix help

2 Final Cut Pro problems.

Backstory: I have a several modest sized files that I have been editing on for the last 2 years off and on. About a week ago I open up FCP and get an error message that the file needs to be updated and then a subsequent can't update message (we'll get back to that later). I then leave FCP running and go off to do other things thinking that I will be able to fix it later. Later came but when it did I got the dreaded you computer is completely out of space message (I had 600ish gbs remaining 30 mins prior). This critical lack of space locks me down and makes it so my computer won't boot and eventually I need to re-install from my time machine backup.

Now: I have again tried to get my old libraries working to no avail and again (not making the connection) left FCP running. This time I caught it after it had only sucked up 800 GBs (I was back to 1.5TB after my migration and now am back down to 700ish.

Looking in Storage in Settings I notice this:

And as of the post I have let that pane run about an hour to see what it will calculate to (most likely my missing 800+ GBs).

So the first question is how do I stop FCP from trying to kill my system?

Next question is how to I restore my library files?

When I try to open I get this error:

When I try to Update I get:

Same story with backups. I have tried various things I have been able to find on this subject on the web/youtube but all to no avail.

Anyone have any idea how to fix these issues? Haunted Final Cut Pro? Exorcism needed?

M1 Max MacBook Pro 14.4.1, FCP 10.7.1