Unable to create new local world. "Out of Memory!"

I tried to create a new local world and I get the "Out of Memory" popup. I have over 40gb available. And I only have about 20 local worlds totaling about 2gb.

I have gotten this error before, but only in regards to the downloading from Realms which is a separate issue.

I see there are other platforms having this issue, and maybe this is a duplicate, but please fix asap.