Also, are you using AMD or ARM images for those?
even if the containers themselves only use 128MiB total: the VM will cordon off everything it's told to; which most people are unlikely to change until there's an issue, and is configurable down to 1GiB as a minimum.
FWIW Docker Desktop on my machine (M2 Macbook Air; 24GiB Ram) defaulted to using 8GiB of RAM.
Scratching my head as to why devs are buying up these new macs knowing up front that they will not work well for the job they were bought for.
Why not make it easier for yourself and have your dev machine match up with prod?
You can run a constant VM with 2/4/8/128gb of ram or whatever you need. I use one at work for years and I think mine is 16gb of ram and it’s way over provisioned most of the time. Unlike how you might expect, treat the cloud vm like a work laptop not a production service. Let people write scripts that stay there, let people keep it on 24/7, available on demand, etc. It’s a cloud laptop not a production VM.
Even giving people a headless Intel NUC to connect their laptops too would be way, way cheaper (assuming you're just doing development).
Having said that, cloud development means you don't need big capex orders for laptops all the time, and it's probably easier to secure.