Low memory warning as soon as Media Encoder open

Since updating to the latest After Effects, I can no longer preview my timeline if media encoder is open in the background, regardless of it rendering something or not!

I get a message in AE saying "Low memory warning. RAM use has been extended for previews. Adjust RAM settings in Preferences > Memory & Performance".

I have an M1 Macbook Pro, with 16GB Memory. Within AE, my settings are...

MEMORY

- 3GB RAM reserved for other applications

- 13GB RAM shared by AE and Media Encoder.

PERFORMANCE

- Multi-Frame Rendering enabled

- 10% CPU reserved for other applications.

If anyone has had similar issues and resolved, please let me know!

Thanks