Sanguinololu board is not big on memory. If your trying to enable eeprom chitchat and other additional stuff, then the best way to reduce it is to not run autolevel. Or don’t use a full graphics LCD display. It will free up a few gpio pins but that’s it. Do not run a servo or autolevel, or fancy display. If you run a newer version of firmware in the newer version of Arduino IDE like that of the bl touch, as that is setup with newer firmware. And will have to transfer all the info over to the newest firmware. But I believe your having trouble else where. Your version of Arduino IDE need to have the u8glib library installed. Then make a few changes to firmware.
Mine ran fine. Still working. Admitting though that it is limited. However, they are a strong board and easy to change individual parts and not always the whole board, sometimes, the repairable option is a better one for costs or maintenance. Just saying.