PS4 error code CE-35694-7
Solution 1. Free more space in the PS4 drive
PS4 error code CE-35694-7 is caused by downloading or installing a game that requires more space than the available space in your PS4 hard disk drive. Some games need more space than the required amount. Try to free 100 GB of space in the hard disk drive to fix the error. After deleting some files, it is advisable to power cycle your PS4, to prevent cache problem. A power cycle is to turn off and unplug your PS4 for at least 30 seconds.
Solution 2. Rebuild Database
If the problem PS4 error code CE-35694-7 appears after a firmware update, it could be caused by a damaged firmware. Try to rebuild your PS4 firmware using Safe Mode. Safe mode can be accessed using this YouTube guide here or use the instruction below.
Solution 3. Upgrade console Hard disk drive (HDD)
You might want to consider buying a hard disk drive if you do not want to delete any of the existing files. If money is not a problem, buy 1 TB or higher hard disk drive. The higher the storage the more games you can store. Also, check the RPM of the hard disk drive. Make sure it is 7200 RPM or higher so the read and write speed will be high. The higher the RPM the faster the loading time of your games.
Also, you might want to consider Solid State Drive (SSD) for much faster loading time, less functional defect, faster transfer rate, and higher lifespan. However, SSD is expensive than a hard disk drive. 256 GB of SSD might cause your 2 times the price of a 1 TB hard disk drive.