Why is iCloud Drive taking up 70GB on my Mac but only 1.7GB in iCloud storage?

I noticed it seems like iCloud Drive is taking 70GB on my Mac storage but when I check my iCloud storage it says my iCloud Drive is only 1-2GB which is accurate because I have barley anything on there. I just don't understand why there is such a drastic difference. Also, even if there is 70GB why would it be using my Mac storage instead of cloud storage. None of this is making sense to me. Where and what is taking up that 70GB of space?

[Re-Titled by Moderator]