System Data taking up all my space on my MACBOOK AIR

Hi,

I am having difficulty with my MACBOOK AIR, Running MAC OS 14.5 (23F79), Apple M2- 2022, Memory 8GB

I do not have much content on this Mac, all of it is stored on external hard drives, but when i look at the below, the system Data takes so much space, then i have issues when running my apps like Keynotes...

How do I solve this issue (simple manner, i am no geek :) ) ?

THANK YOU