Hello there. This is a very common point of confusion. I completely understand why it seems counterintuitive, but here is what is happening:
iCloud is a syncing service, not a secondary hard drive. It mirrors exactly what is on your iPhone. If you take a photo, it exists on your phone's physical memory and uploads a copy to iCloud. Unless you have 'Optimize iPhone Storage' turned on (which can be slow to react), your physical 1TB will still fill up regardless of your 6TB iCloud plan.
However, for a 1TB iPhone 17 to fill up suddenly, you are likely experiencing the 'System Data' indexing bug. Deleting apps won't help because iOS is hoarding a massive visual cache and thousands of hidden duplicate media files (like Live Photos) in the background.
Instead of wiping your phone, I recommend running a native diagnostic check to see exactly what is hoarding the space. I built an official Apple shortcut that bypasses the visual cache, forces the system to recount your physical media files, and then provides the exact binary utility needed to bulk-wipe the duplicates natively.
You can run the diagnostic script securely via iCloud here: ***
Run it, use the recommended tool to clear the duplicates, and then do a hard restart. This should force the system to clear the phantom data. Best of luck!
[Edited by Moderator]