"Your system has run out of application memory."

I am on macOS Big Sur Version 11.2.3. I'm using the most up to date Beta Apps of media encoder and premiere. 

I bought a new M1 Mac to make editing seameless and easy.  I've only edited 2 videos on the M1, these were very simple videos, just a few seperate clips and some audio. But on this 3rd one I run into trouble. This project was had more files. I shot some .mov files on my iphone and wanted to edit them in premiere pro. I moved 35 .mov files into premiere.

When I went to edit, 5 or 6 were showing as green and some gave the yellow media error. Even if I got them to play, they were like the footage was very shaky. I did some research and found that premiere doesn't handle .mov files very well. So, I went to encode them to ProRes in media encoder. I queued up all of the files, and then after getting through the first 3 files, on the 4th one media encoder stops. Then the spinny circle of death pops up on my mac. And the system says that my M1 has run out of Application Memory. It says that Encoder is taking up 50 GB of RAM. So I'm forced to quit.

I've also had this problem in Premiere Pro just trying to edit these files. Best Buy told me to uninstall and reinstall, that did not work. Some support in the Adobe Support helper had me change the memory settings in Premiere Pro... Preferences >> Memory Allowance >> Optimize Rendering >> Change it to Memory. I also deleted media cache files in media encoder. After doing that I'm still getting the same error in media encoder.