Check how many boot environments you have and possibly remove a few.
Increasing disk size in Proxmox won’t increase the formatted disk size in TrueNas.
You could do that by making another larger disk, attaching that to the VM, then replacing the original disk with the larger disk in the system boot ui.
Thanks & Issue resolved by creating a new TrueNAS VM and this time created at 32GB boot drive instead. I did this because I was stucked in replacing the original disk with the larger disk in the system boot ui phase, not sure how to do it.