Google Drive Backup Still taking up space on SSD

I need some advice on data management between my laptop and my GDrive; as I'm running out of space on the SSD of the laptop. 

I own a 64 bit, Lenovo Flex6 14 ARR - laptop with a 256 GB SSD; I'm running Windows 10; My applications are exclusively with a desktop version of MS Office and online browsing, mostly on Chrome. 

I made a one time purchase MS Office with a discount from my university and it is much less costly than the yearly payment for Office 365.  

I've also purchased (leasing really) 1 TB of backup storage capability on my GDrive for backup. 

I created a desktop icon for Gdrive and moved all my data files and documents and photos onto the GDrive; and I work exclusively on those documents in the GDrive…I thought. 

But…those data files are still taking up space on the SSD…and, naturally, I'm running out of space on the SSD - and the machine is starting to crawl; rather than blazing like it used to do. I'm guessing the backup and sync GDrive application is duplicating the files on the SSD.  

I spoke to a Google One person and they said that I needed to abandon MS Office and work with Google docs; and disable the Sync.  I'd prefer not to abandon Office as Office is a more robust platform for working on documents (word, excell, powerpoint) than Google Docs. 

I think the problem is mirroring the GDrive to my laptop. So when I create a file in "GDrive" I'm actually creating it on the SSD and then Google is backing up and Syncing it in GDrive.  I'm not sure I need to do this to be able to use MS Office.

I need advice on how (if possible) to continue to use MS Office with files that exclusively reside in the cloud.  I realize that when I don't have internet access, which is never, that I won't be able to access those files.  

I'm guessing what I need to do is disable the sync function in GDrive…but will MS Office still be able to work on those files?  

Well, solo58.  It's been a month and now response.  Sorry about that.

I don't use google docs or Gdrive.

I just don't know what works there.

Have you been able to resolve this on your own?  If so, please share for posterity.

Nope, still looking.  I'll try the Google forums…

Though I'm curious, what do you use for backup? 

Don't tell anyone, but unless I copy it somewhere else… I don't.

If it is important for work.. I copy it to the server at work.  If it's pictures of grandkids, then it's probably on my phone also and if it is a "good" one it is saved on an electronic picture frame that I have.