The heap setting is being silently ignored — check the file's line endings
Java desktop tools read -Xmx from a .vmoptions file next to the executable. On Windows that file must use LF-only line endings — Notepad and most Windows editors save CRLF, the launcher fails to parse it, and falls back to the small default heap with no error message at all.
Re-save with LF endings (VS Code, or Notepad++ → Edit → EOL Conversion → Unix), or write the file on Mac/Linux and copy it over. Then confirm it applied — most tools show the current max heap under Help → About.