@Manoj
There are two versions of Bacon with 16 and 64 GB storage space. I have 64 GB one. Its /system is 1.2 GB in size. It looks smallish for sure. Presently about 172 MB space is free. I would guess 16 GB variant might have allocated about the same space for /system.
Is it possible to repartition block device? I suppose the best way forward would be to increase /system, let’s say by 500 MB. Was this option considered?