You are correct. The catalog size is 857MB while the Previews are 20GB. So the message I get when I close LR that my catalog is over 4GB is not something I should be concerned with.
Still not sure why my previews are not decreasing in size since they should go away after 1 week.
The previews that will be discarded after a week are the 1:1 previews.
Your 2048 px previews are regular previews, and will never be deleted, unless you delete the preview cache folder.
If you do that, Lightroom will recreate previews as needed - i.e. it will not create previews for a folder until you view that folder in the Library. So if you have folders that you rarely look at, there is a chance that it will take some time for your previews folder to grow to the size it had originally.
The downside is that the first time you browse any folder after deleting the preview cache, LR will take some time to recreate the previews.
The 4 GB message is a bug, and can be ignored.