It’s not system RAM, you could have 320 GB and still get this. , there’s 1GB reserved for Lua scripting and it needed more, so crash.
See here for fix https://forums.fatsharkgames.com/t/add-the-1-to-2gb-lua-heap-switch-to-launcher-settings-plz/
This is a known issue with the crafting update, and happens frequently with large inventory and mods, and now even without mods.