How do I optimize storage on MacBook Air and iCloud?

I am a developer, and I have used my MacBook m1 for about 2 years. I accidentally used iCloud with the assumption that it will only optimised my storage but I think it ruined my storage.

After a bit of searching, it seems like this amount of storage utilised (when iCloud drive is just 5GB) is to link iCloud remote and local computer storage. Further Documents should never take 47 GB either. Can anybody please help? I have scan my local computer with OmniDiskSweeper and following is what I got.

The Application Support has a folder named CloudDocs/session/, which take 52 GB (fluctuating) and directory like i took 48 GB. When I switch off iCloudDrive and Desktop & Documents Folders, all the local documents and desktops lost, which is suprisingly because the combination of these folders is much more than 5 GB and I thought iCloudDrive would only store very few information.

[Re-Titled by Moderator]