How do I clean up excessive system data on MacBook Air M2?

"How do I clean up excessive system data on MacBook Air M2?: My storage is showing 651 GB of system data and I am unable to figure out how to clean some of it up. The next largest group of data storage is Applications at 24.41 GB. This is a huge amount of data I cannot clear. Some help please."

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Reinstall the macOS Anew:

Seeing “System Data” in excessive amounts, you should backup your hard drive, and then format it, and then transfer it all back, through use of Migration Assistant. A fresh install fixes this.

So, Reinstall the macOS Anew:

See my User Tip: How to Reinstall the macOS Anew - No TMB Prior to Upgrade - User Tip. Format the hard drive with the applicable macOS, on step D.

In Depth:

Pretty much, it is a matter of:

1. Erasing: and formatting your hard drive to APFS
2. Installing: [the applicable macOS] via a USB Bootable Installer
3. Restoring: info from a Time Machine Backup, using Migration Assistant

System data is usually all diagnostic logs, software updates, configuration profiles, caches, and other random temporary files. In my experience, a simple full restart usually clears many of these files. If a normal restart does not solve your issue, you may want to force restart the computer by pressing and holding down the Command (⌘) and Control (Ctrl) keys while Pressing and holding the power button until the screen goes blank and the machine restarts.

See if this ASC post can help: What is “Other” storage on a Mac, and how… - Apple Community