You could copy the install files to another location then create a smaller FAT32 active partition and copy the install files back on that partition.
The reason it can use FAT32 is because the Install.esd file is split so each part of that is less than 4 GBs.
On my newer systems, I use an NTFS drive with an active partition and download the .iso, then mount it and copy the install files to that. Since the size of the install.esd file is no longer relevant it boots fine on a UEFI system. This only works on some newer systems and both my 10th and 11th Gen Intel Processor systems work this way.
I have never tried to shrink that partition but if it would work, leave it at 16 GBs for safety. But the way the partition is configured, you may not be able to shrink it. The rest of the drive may be write protected anyway.