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The Local Storage settings window shows I have 1.8 TB of Local Stored Photos on my 512GB M1 MacBook Air. See Screenshot below.
The size of the Library on Adobe Cloud is 696GB with 81050 photos and videos.
The size of the local library file on the machine is 149GB, which is about right for Smart Previews, and consistent with the sizes of the proxies inside the library.
The screenshot shows "free space" as 36.33GB, but the Finder free space on the machine is 131GB.
This whole situation is occurring on two identical macs.
On both macs I have deleted the local library completely and downloaded fresh copies from the Adobe Cloud with the same result.
Everything seems to be working perfectly so is this just a bug in the Local Storage setttings display?
Advice welcome please!
Adding bug number and updating status
I checked with one of the developers and this is the story:
You've requested to store 1.8 TB of locally stored copies. You do not have the free space to do so - hence the warning message "Not enough space available withe selected settings" The locally stored copies could be the Smart Previews you've checked in this dialog to store plus any Albums where you've marked them to store locally.
Thanks very much Rikk, but that wasn't the issue. Note that even if I had requested the entire 696GB Library to have SPs and Originals stored locally it would not require 1.8TB of local storage.
The answer emerged on a two hour Support Chat with Adobe, during which he asked me to install older versions of Lightroom. Doing this revealed that it was a bug that came in on version 5.4.
Here is the screenshot of the same library with version 5.3 installed:
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