I have the same problem going on. The folder "System storage" and not "IOS" is consuming roughly 25GB and "growing". Esp when i use my phone extensively. It's a Iphone 7+ with 128GB of storage. The phone basicly has bin used since 2018 till today without any re-install or so. Once in a while i perform a backup, grab all the photo's and personal stuff off and i free space with this.
Not even a few days ago i managed to clear up quite some old video's files blabla, the free space got back to a healthy 30GB again. Now last morning that remaining free space was or is almost at it's limit. *** is going on? It started to happen when i more and more frequently update IOS to the latest version. It seems like most of these packages are more designed or suited for a newer generation of phones rather then the old ones.
When i reboot the phone, there is a difference in space consumed by that folder. First reboot, 18GB. Second reboot, 16GB. So upon a few reboots it does seem to clear it out. But we as users should be able to perform maintaince and not kick our own personal belongings such as media in order to free space because Apple is using some sort of technique to organise primarily cache and we cant clear it.
Its just stupid to have a phone consume over 9GB for IOS and a additional 25GB for "Cache" or "logs" or such. Clearing safari and such is'nt going to remove these large chunks of data consumed by "system storage". It's just stupid. I've rebooted it 3 times now, the size of that folder is within 8GB now. Most websites that provide advise on clearing storage all come to the same story. Apple needs to provide us a way to clear the cache which obviously consumes the most part of it.
I have a Iwatch as well with that, a 4GB model that is unable to update itself because the package is larger then there is on free storage. I'm 99% confident that such update packages are being downloaded and temporary being stored in that System folder. Its consuming and eating space. In order to update my iwatch i have to go through hoops which involve resetting and all that in order to get a package on that Iwatch.