This is almost always caused by unmovable files sitting near the end of the partition. The Shrink feature can only cut space from the END of a partition, and it can't move files out of the way to make room. If there are system files parked in that area, Shrink will stop at the lowest cluster occupied by an unmovable file.
Common culprits:
Pagefile (pagefile.sys) - often placed in the middle or end of the partition
Hibernation file (hiberfil.sys) - same deal
System Restore points (System Volume Information)
MFT reserved zone - NTFS reserves space at the end of the partition for MFT growth
Try temporarily disabling the pagefile:
System Properties → Advanced → Performance Settings → Advanced → Virtual Memory → Change
Select C:, set to "No paging file"
Click Set, then OK, reboot
Then try Shrink again and see if the available space increases.