Your system has run out of application memory: Memory Overload Issue on 2021 M1 Pro MacBooks

Hey there, I'm using a MacBook given to me by my company. It's a 2021 M1 Pro with a 1TB SSD and 16GB of RAM. So, here's the deal: I was working on Figma and suddenly got this popup saying "Your system has run out of application memory." I checked and saw that a bunch of processes, both from Figma and others, were using almost all of the 16GB of memory. This never happened before.

Here's the interesting part: the exact same thing happened to two of my colleagues who have the same model of MacBook. Any ideas on what's going on?