Apple enthusiasts claim it's literally double the amount of RAM they need for their workload. They proceed to watch Netflix in a google chrome window where it's the only tab open on their 2500 dollar computer.
That's probably what the VM is doing: it's self-hosting a server running timemachined. timemachined itself is actually running out of a docker container that's running on the VM, but that's because by 2033 every single update, which occur daily, breaks the existing docker installation on a Mac. Which is honestly very similar to what happens in 2023, except it's every other day currently.