Welcome to Apple Support Communities. I understand that since updating to iOS 11 you're experiencing some latency and you've received a storage alert when prior to updating you had approximately 65GB of storage available. I also see that you're seeing "System" storage consuming 49GB. I know how important it is for your iPhone to run as expected and I'm happy to assist you. You didn't mention if you had restarted your iPhone since noticing this, if you haven't already follow these steps to restart and check your storage again: Restart your iPhone, iPad, or iPod touch
If you're still seeing the discrepancy after restarting, check to ensure you have a recent backup: Locate backups of your iPhone, iPad, and iPod touch
If you need to create a backup, follow these steps: How to back up your iPhone, iPad, and iPod touch
Then, use the guide below to reinstall iOS 11 to your iPhone. Please be sure to follow step four and choose to "Update" to prevent data loss during this process.
If you can‘t update or restore your iPhone, iPad, or iPod touch
- Make sure that you're using the latest version of iTunes.
- If iTunes is already open, close it. Connect your device to your computer and open iTunes. If you don't have a computer, borrow one from a friend or go to an Apple Retail Store or Apple Authorized Service Provider for help.
- While your device is connected, force restart it with these steps:
- On an iPhone 8 or iPhone 8 Plus: Press and quickly release the Volume Up button. Then press and quickly release the Volume Down button. Finally, press and hold the Side button until you see the recovery-mode screen.
- On an iPhone 7 or iPhone 7 Plus: Press and hold the Side and Volume Down buttons at the same time. Keep holding them until you see the recovery-mode screen.
- On an iPhone 6s and earlier, iPad, or iPod touch: Press and hold both the Home and the Top (or Side) buttons at the same time. Keep holding them until you see the recovery-mode screen.
- When you see the option to Restore or Update, choose Update. iTunes will try to reinstall iOS without erasing your data. Wait while iTunes downloads the software for your device. If the download takes more than 15 minutes and your device exits recovery mode, let the download finish, then repeat these steps.
- After the Update or Restore completes, set up your device.
Once iOS 11 has been reinstalled, check your storage both in iTunes and on your iPhone to see if it is reporting differently: How to check the storage on your iPhone, iPad, and iPod touch
Let me know what you find.
Warmest Regards.