Confused by excessive memory allocation

I'm running Windows 11 ARM on a M1 MacBook Air with 8gb RAM.
CPU and memory allocation is set to automatic: 3gb memory for this machine.
However when I'm running Parallels it's using over 6gb RAM according to activity monitor, any ideas as to what's going on here?

 

Hello @Chae , The RAM consumption of the Parallels process you mention is the memory being used by the virtual machine, if you assign 2 GB of RAM to it you see that process use up to 2 GB, depending on how the virtual machine uses RAM the value will vary, but the values of around 1GB for a Windows VM are totally normal. It's Virtual Machine , so it will take some spaces , when comes to RAM. Thanks, Parallels Team.