I've been using my 8GB M1 Macbook Air to make a Flutter mobile app. I'm testing it on an iPhone 14 Pro Max iOS simulator. I recently got a popup saying my system was out of application memory. None of the apps I had open seemed to be taking up that much RAM. I checked in activity monitor and found the process SimMetalHost (iPhone 14 Pro Max: default) was using around 40GB of RAM. I stopped the process which stopped the simulator. That fixes the error temporarily, but then the issue comes back after an hour or so.
Please check issue number 127482 at Flutter repository (from May 24, 2023).
Try to downgrade Flutter to an older version (before 3.10) and see if the behavior persists.