MacBook storage in Settings is not showing accurately

There is no 'fix' for that inaccurate display of storage space. That particular view is unreliable for some time now.

However, you can get the most accurate evaluation of your space available and free by opening the Disk Utility app and selecting your drive and volumes there.

After opening Disk Utility you may wish to click View > Show All Devices so you can see all the drive hardware connected to your Mac.

811_Rachit wrote:

Thank you for the response, yes, I can get accurate space data by other means (disk utility, CleanMyMac, etc...).

Don't even think about using CleanMyMac, a.k.a. BrickMyMac by some veteran users here in the Community. CMM is in a class of apps - cleaners, optimizers, anti-virus and VPNs - that do little more for the Mac than separate money from its owner. These apps do nothing that macOS doesn't already do. But they do very often cause problems and conflict with the proper operation of the computer.

The best thing you can do with these apps is never install them on the Mac. If you do install them, then you should uninstall them and never look back.

Is it a known bug that can be expected to be corrected in the next update?

Yes, it is a know issue for a long time.

Can we expect it to be corrected in the next update? Don't hold your breath waiting for it.