OneDrive on MacOS Eating Up Huge Amounts of Storage

Hardware: M3 Max MacBook Pro 14" (14 Core CPU/30 Core GPU, 36GB, 1TB)

Software: MacOS 26.4

OneDrive Version: 26.002.0105 (Mac App Store version)

I use OneDrive to sync files between my PC (primarily used for gaming) and my MacBook Pro (pretty much everything else) mostly because I'm paying for Office 365. I've noticed in the MacOS storage storage section of settings, there's something taking up ~170 GB of storage.

Digging around, I found the culprit: Library>Cloud Storage>OneDrive is currently sucking up ~143GB of storage.  It seems like OneDrive is keeping large numbers of files stores locally. 

Legitimately have no idea why this is the way it is, or how to solve the issue (or if there is even a resolution). Like, why bother with files on demand when the application is going to store half the files locally, anyway?