You cannot run defrag because the space is down to 12%.
If you look in the windows..installer folder you will find the culprit. There are many .msp files with a size of 117,166. If you remove some of these you will be able to run a defrag on your hard drive. But if you remove the wrong ones, then office will not update.
What is the fix and why are there so many .msp files causing hard drive issues.