Seeeduino XIAO Running out of Flash Memory

I have a sketch that works fine on the Arduino Nano (ATmega328P with 32KB flash RAM) and uses up about 88% of the flash RAM. It won’t compile on the Seeeduino XIAO. The compiler complains that the board is out of flash RAM. The error says: “… region `FLASH’ overflowed by 986860 bytes” but I thought the Seeeduino XIAO actually had more flash RAM (256KB) than the Nano?

I’m using the PROGMEM directive to put long strings into the flash RAM. Am I supposed to be using a different directive for the Seeeduino?

Thanks.