Parallels VMs double counted for disk space usage?

Question

My Mac claims to be running out of storage, and when I look at my storage breakdown, this is what I see:

However, when I look through the files, this is what I see:

Documents appears to only be about 60 GB, and almost all of that is due to Parallels VMs (I have a Windows 10 VM and an Ubuntu VM so I'm not surprised about the size of that folder).

So it looks like my Mac doesn't realize just how much storage it has... is there a way to fix this?

UPDATE:

Here is what the disk utility shows:

And here is what running diskutil list gives me:

/dev/disk0 (internal, physical):
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *251.0 GB   disk0
   1:                        EFI EFI                     209.7 MB   disk0s1
   2:                 Apple_APFS Container disk1         250.8 GB   disk0s2

/dev/disk1 (synthesized):
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      APFS Container Scheme -                      +250.8 GB   disk1
                                 Physical Store disk0s2
   1:                APFS Volume Macintosh HD            240.1 GB   disk1s1
   2:                APFS Volume Preboot                 42.1 MB    disk1s2
   3:                APFS Volume Recovery                510.4 MB   disk1s3
   4:                APFS Volume VM                      1.1 GB     disk1s4

UPDATE 2:

Here is what Disk Inventory X says:

Answer 1

So it turned out that there was hidden folder that was causing my woes... it was 58 GB in size! Disk Inventory X helped me catch it.

The Mac storage analyzer was counting that stuff as Documents, which was causing the weird discrepancies. That hidden folder was something that could easily be deleted since it just contained junk.