I'm working with very limited recourses on my PC so I wish this graph worked properly I allowed 3gbs when I created the server and now decided to bump it up to 6G's I'm having the same issue as OP there is no update on the GUI itself that says so, it gets to 1% free and seems to stop at 2800ish MB's of space and the entire server starts to lag. This is extremely frustrating I've looked around the internet and can't seem to find ANY fix about this. My user_jvm_args file looks as so.
# Xmx and Xms set the maximum and minimum RAM usage, respectively.
# They can take any number, followed by an M or a G.
# M means Megabyte, G means Gigabyte.
# For example, to set the maximum to 3GB: -Xmx3G
# To set the minimum to 2.5GB: -Xms2500M
# A good default for a modded server is 4GB.
# Uncomment the next line to set it.
-Xmx4G
-Xms2G
I read on reddit that adding an Xms command at the end fixed it for someone but it didn't for me at all.