They're different things.
The smaller 29 number is your blood glucose (BG) level at a point in time, measured in "mmol/l". BG goes up and down a lot over the course of day and night. The "4-7 mmol/l" range you always see quoted is typical for a non-diabetic during the day who hasn't eaten or drunk anything in the last few hours, but it can be misleading without that context: non-diabetics can certainly go below 4 (eg overnight or after exercise) and above 10 (eg soon after eating).
The big 176 number is your "HbA1c", which measures how much glucose your red blood cells (RBC's) have picked up over their lifetime. RBC's last for 3-4 months before being recycled, so HbA1c roughly correlates with your average blood glucose levels over that period. It's only useful because most people don't have a detailed record of what their BG has been doing in recent weeks, and the HbA1c measure is a reasonably good (but not precise) hack for estimating the average over time. It's measured in "mmol/mol", different to the "mmol/l" for the BG test.
I found this pic useful when I was getting a handle on things:
View attachment 21850
BG levels down the bottom (corresponding to your 29 mmol/l); HbA1c up the top (corresponding to your 176 mmol/mol). The pic makes the correspondence more exact than it actually is, but it's good enough for a rough idea.
The important thing right now is that your numbers seem to be way high, which isn't a reason to panic but is surely reason enough to take the thing very seriously. With proper treatment from your HCP's etc I'd guess that you will see some large improvements pretty quickly.
Ideally the goal is to get things down into the green zone - so as you were told, an HbA1c of 40 mmol/mol is "normal" and very roughly corresponds to average BG levels around 7 mmol/l. However you will probably also be advised not to push for bringing things down too fast, because this can cause some issues with small blood vessels in the eyes etc.
Good luck! Let us know how you get on.