Explanation
The best way to resolve the issue is to move factory applications to external memory. This will free up some space on the phone's internal storage, which is required for updating the phone. To do this, you can follow these steps1:
Insert a microSD card into your phone if you don't have one already.
Go to Settings > Apps and tap on the app you want to move.
Tap on Storage and then on Change.
Select the SD card option and tap on Move.
You may need to repeat this process for multiple apps until you have enough space to update your phone.
Alternatively, you can also clear the cache and data of some apps, or uninstall the apps that you don't use frequently. You can find more information on how to fix insufficient storage error on your phone in these articles234. I hope this helps.