That’s normal, the default AI has little memory. It has always been this way, however, even if the entire memory bar fills up, the game still plays normally! Only older history gets excluded from the memory.
Again, it has always been this way. I only show the details in this update so you can see how much memory is being used, it is fine for the game to use up 100% memory.
The initial memory is taken by the world data AND the max output tokens, if you reduce the output tokens (so the AI generates shorter responses) then you also get more memory