Thanks. It looks like I am getting close to the cutoff point. I wonder how others manage these kinds of things. I have a lot of music files on my internal drive (860 GB). I also have multiple backups in various media (cloud, external disks) with redundancies. What I have never had to do before is move files off of my primary machine to make room for my work files.
It's so much easier to store everything in one place and to treat it as the 'master' from which all copies and backups spring. If I were to move my music to an external drive, I would need to keep track of which disk is the master and which ones are the "children" (copies). It just adds a layer of complexity and creates possibilities for confusion down the road when I, say, want to add more music files to the backup chain.
I don't want to get into NAS or RAIDS. Life's too short, I'm not that skilled in tech, and I prefer simplicity. But I also realize that when I replace my M1 machine in half a year to a year from now, getting a 4TB machine would be serious overkill. If it weren't for the music files I could easily live with 2TB and have plenty of room to grow. A 3TB machine would be perfect. But that seems not to be on the menu at Apple.