1. What Actually is macOS System Data?
In macOS System Settings > General > Storage, "System Data" (previously named "Other") is a catch-all category for files that do not fall into Applications, Documents, Photos, or Developer categories.
2. APFS Time Machine Local Snapshots
If Time Machine is enabled, macOS creates local APFS read-only snapshots every hour whenever your backup disk is disconnected. These snapshots freeze deleted files on your drive, preventing disk space from being reclaimed.