This is most likely in your ~/Library/ directory. For example if you backed up a iOS or iPadOS device this can use up 10s of GBs of data that is located in the hidden ~/Library directory. If you really want to mess around (not recommended if you don't know what you are doing) you can see the worst offenders by following these steps:
Go to your ~/Library folder by holding down the option key in the Finder and choosing Library from the Go menu. Don't select anything and do View Menu->Show View Options (or cmd-J). Check calculate all sizes. Sort the ~/Library window by Size. Here's mine:
I have some Virtual Machines in Containers which is why mine is so large. The Mobile Documents is where iOS and iPadOS backups are stored (see edit below). Developer is obvious and Application Support I would have to look through to see if I could get rid of anything old (probably).
Hope this helps. If you just want to get rid of iOS backups, you can use the Finder with your iOS device and choose Manage Backups and delete whatever is necessary.
If you start messing around in the Library make sure you have a good backup to recover from mistakes. Hope this helps.
Edit: Sorry, Mobile Documents is where macOS manages your iCloud documents. Backups for iOS and iPadOS are in Application Support/Mobile Sync/Backup.
Using an M1 MacBook Air so mostly Docker right now but I’ve been experimenting with some open source VMs for Linux and virtualizing MacOS Monterey. Qemu works pretty well if you get a patched version. I need to do some research to see what is new in that department.
The "Storage Manager" view is aimed at those who don't understand folders.
DaisyDisk (or the free OmniDiskSweeper) give a view of storage from the folder perspective. That is what you need to track down what is using your 500GB SSD.
ps. For the future, it is considered bad manners to shout (all capitals) in title or message.