[Moto G 4G Android Development] bweston6:
I am also facing the same issue as @rah2501 with insufficient space to install pico GApps. The size of my System partition is 1086MB with 206MB remaining after installing lineage-16.0-20210715-UNOFFICIAL-peregrine.zip.

GApps log:

# Begin Open GApps Install Log
------------------------------------------------------------------
ROM Android version | 9
ROM Build ID | lineage_peregrine-userdebug 9 PQ3A.190801.002 eng.steve.20210715.142136 test-keys
ROM Version increment | eng.steve.20210715.142136
ROM SDK version | 28
ROM/Recovery modversion | 16.0-20210715-UNOFFICIAL-peregrine
Device Recovery | TWRP 3.5.2_9-0-2bc3eccd
Device Name | peregrine
Device Model | peregrine
Device Type | phone
Device CPU | armeabi-v7a,armeabi
Device A/B-partitions | false
Installer Platform | arm
ROM Platform | arm
Display Density Used | 320
Install Type | Clean[Data Wiped]
Google Camera already installed | Clean
VRMode Compatible | false
Google Camera Compatible | true
New Camera API Compatible | false[force_api]
Google Pixel Features | false
Current GApps Version | No GApps Installed
Google Camera version | Legacy
Installing GApps Zipfile | /sdcard1/open_gapps-arm-9.0-pico-20210723.zip
Installing GApps Version | 20210723
Installing GApps Type | pico
Config Type |
Using gapps-config | Not Used
Remove Stock/AOSP Browser | false[NO_Chrome]
Remove Stock/AOSP Camera | false[NO_CameraGoogle]
Remove Stock/AOSP Dialer | false[NO_DialerGoogle]
Remove Stock/AOSP Email | false[NO_Gmail]
Remove Stock/AOSP Gallery | false[NO_Photos]
Remove Stock/AOSP Launcher | false[NO_GoogleNow/PixelLauncher]
Remove Stock/AOSP MMS App | false[NO_Messenger]
Remove Stock/AOSP Pico TTS | false[default]
Ignore Google Contacts | false
Ignore Google Dialer | true[NoRemove]
Ignore Google Keyboard | false
Ignore Google Package Installer | false
Ignore Google NFC Tag | true[NoRemove]
Ignore Google WebView | false
Total System Size (KB) | 1112708
Used System Space (KB) | 901060
Current Free Space (KB) | 211648
Additional Space Required (KB) | 54632 << See Calculations Below
------------------------------------------------------------------
# End Open GApps Install Log

INSTALLATION FAILURE: Your device does not have sufficient space available in
the system partition to install this GApps package as currently configured.
You will need to switch to a smaller GApps package or use gapps-config to
reduce the installed size.

NOTE: The Stock/AOSP NFC Tag is not available on your
ROM (anymore), the Google equivalent will not be removed.
NOTE: The Stock/AOSP Dialer is not available on your
ROM (anymore), the Google equivalent will not be removed.
# Begin GApps Size Calculations
------------------------------------------------------------------
TYPE | DESCRIPTION | SIZE | TOTAL
| Current Free Space | 211648 | 211648
Remove | Existing GApps | + 0 | 211648
Remove | Obsolete Files | + 0 | 211648
Remove | cmsetupwizard | + 0 | 211648
Remove | extservicesstock | + 52 | 211700
Remove | extsharedstock | + 24 | 211724
Remove | packageinstallerstock | + 8708 | 220432
Remove | provision | + 0 | 220432
Install | Core | - 224048 | -3616
Install | calsync | - 2548 | -6164
Install | dialerframework | - 12 | -6176
Install | googletts | - 30892 | -37068
Install | packageinstallergoogle | - 8348 | -45416
| Buffer Space | - 9216 | -54632
------------------------------------------------------------------
Additional Space Required | 54632
------------------------------------------------------------------

# End GApps Size Calculations

# Begin User's gapps-config

# End User's gapps-config

I would just edit the partitions with fdisk but there are 36 of them and it would be a shame if I bricked my phone. What would be the most relevant tool to do this or is there an alternative method?