Good day @travisGatesMcGee@hotmail.com
A backup file can include tens of backups and not only a single backup.
When you back up a database to an existing media set, then you can controls whether the backup operation appends to or overwrites the existing backup sets. The default is append.
This means that your backup file might includes multiple backups and the size of the backup's file might be tens times more than the size of the single backup which you want to use. In this case restoring the backup directly from the file does not need to pass the entire file from the storage to the server, while transfering the file does transfer the entire file.
I have no idea if this your case, since you did not provided enough information, but this is a very common case and it fits your description.
You can check the content of the backup file to confirm how many backups are there and get more information on the backups in the file using the command: "RESTORE HEADERONLY"
For example:
RESTORE HEADERONLY
FROM DISK = N'C:\Program Files\Microsoft SQL Server\MSSQL15.SQL2019\MSSQL\Backup\YourBackupFileName.bak'
GO