free up internal space when i have a external drive?

That's because your drive is far too skow

You would.need a storage card or internal memory to upgrade those games you can store the upgraded games onto your external drive but you would have to move them back to play them

Hi, I'm Luis a Xbox user just like you. Thanks for reaching out us here. That is because the new gen games need the writing speed of the internal drive. Normal external drives are not able to run those games at such a speed. The way to go would be with the official Seagate storage expansion card

Are you installing the game and DLC on the same drive (e.g. an external USB drive)?

Can you try moving the game with DLC to another drive (e.g. to the internal drive if installed on an external USB drive and vice versa)?

Can you also check that you have enough space on this very drive you try to have the game and DLC on (instead the "total" free space shown on the My games and Apps screen)?

For example, you have the game and DLC B installed on the internal drive. The Internal drive now only has 500MB of free space. However, an external USB drive still has 9GB free. So while the console shows 9.5GB free space, the DLC won't install because there
is not enough space on the internal drive.

How big is your internal storage device and how much space is left? Maybe try moving some games from there to your external Toshiba drive to free up some space on the internal drive.

Additionally - we have plenty of space internally and 97% of a 4 tb external drive free.