Earlier quoted context omitted.
My M1 MacBook is currently sitting at 46GB usage. It's not heavily under load (WebStorm, Rider, Android Studio, Chrome, Discord & Slack), not currently running an Android Emulator, LLM or Docker
The OS will use more RAM if you give it more RAM. The fact that you are currently using 46GB on an (I assume) 64GB model doesn't necessarily mean that your workload would run badly on a 32GB or 16GB model.
At some point it becomes impossible for the OS to keep everything it wants in RAM at the same time, and then you get an orgy of disk thrashing and a potential lock-up.
This is not theoretical. I've had it happen on both Macs and Windows machines, sometimes with just a single main app running.
At best you'll get obvious delays if you switch apps, as pages get dumped to disk while other pages are loaded.