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It is indeed a headache doing anything on after effects on my Macbook Pro M1 16gig. I keep getting Low memory warning even when I have nothing else opened on my laptop.
Here is my current After effects comp containing only a few texts, a single picture and a few shapes. All not more than 10 layers.
My activity monitor is green and showing very low activity yet After effects keeps giving me "low memory warning and I am unable to preview my files.
This is very poor and disappointing. I never experience issues like this on my ASUS 16gig laptop.
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You could try purging all memory and disk cache from menu Edit / Purge.
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What are your RAM settings set to in Preferences > Memory and Performance?
I find that when I'm on my 13-inch M1 MacBook Pro 16GB/512GB working with 2160p23.98 Comps I have to work at Quarter Resolution, spot-checking Full Resolution as I go.