Please don't ignore the pinned post in this forum (link in my .sig) about posting OBS Studio log when asking for help/support. There are important system details your screen shots don't provide that would be relevant to a responsible answer
As for better quality with too much space... that is in the eye of the beholder... you have to provide definitions of what is 'too much' for you...
In general, you can easily record and stream at different settings.... HOWEVER, that means 2X (or more) the encoding workload... so, all depends on your GPU, CPU, RAM, Operating System setup, etc. I Record 1080p30 (on an i7-10700K with a GTX 1660 Super ) at about 3X+ the bitrate that I stream at (also 1080p30 ~7000 kbps). easy peasy, low CPU and GPU utilization (not gaming)... ymmv
For a given file size, newer encoders tend to produce better quality, and the expense of almost exponentially more computation to get more data in the same bitrate. Hence only the latest GPUs can handle AV1... For a 'video quality' AV1 files will tend to be smaller than H.265 which will be smaller than H.264 files... in general... lots of exceptions, caveats, proviso's etc (line from The Emperor's New Groove)
What can your system handle? not answerable... it depends. And if doing so for gaming or other variable workload, then may work in one situation may not work in another [and that would be normal & reasonable]. We have no idea (and it won't be in your OBS Studio log) what you operating system background workload is like.