Help me understand how to interpret (and improve my app performance) using the memory chart in the Google Play Console pre-launch reports.
The memory profiler in the Google Play console pre-launch report is just there to let you know if you have an obvious serious problem. Eg suppose the memory usage jumped up and never came down again you might know you had a memory leak. The other thing it could tell you if your memory usage is much higher than it should be for your app. But without knowing the details of what your app does, it is hard to know how much memory it should need.
In the graph you show:
To investigate where your memory is going you should use a Memory profiler and one comes with Android Studio.