I discovered that ios 17.1.1 aparently has a bug in the memory manager not returning cache. I ended up having to deep sleep/suspending all of my apps. This is where it removes the app, deletes cache, but keeps stored data. That gave me enough room to immediately update to 17.1.2.
I tried just clearing all cache and the suspending some apps. In both cases, I could start the update, but cache would grow to take up available memory and the update would fail.
I don't know for sure if cache was growing or not after suspending all apps, but I had enough time to complete the update. After that, I restored apps as I needed them, which was a lot at first. I think there are some infrequently used apps that I have not yet restored, but I'm pretty close to where I was and I able to do everything I need to.
I still see over 127 Gb of usage, but everything works fine. If possible, skip 17.1.1. I was able to update my iPad from 16.x to 17.1.2. Also, I don't know if this bug effected ipados or not.
There may be other issues that cause this problem too. The other solutions here either didn't work or didn't apply. Maybe this will help some others with this problem.
Best of luck!