Re: "Macbook pro M4 Pro Max running out of application memory after upgrading to Tahoe. It runs out of application memory when performing super-simple tasks. Seems to be a memory leak.
Tahoe was a major upgrade, and much re-indexing etc., may be going on in the background to complete the upgrade process ... using memory and power etc.
If more than a few days have elapsed after upgrading, and you haven't already: You could try restarting Mac (Apple menu > Restart) deletes temporary files, re-establishes connections, may update recent setting changes etc, and often rtores order if something is not working as expoected..
Else: Wondering whether your Mac's remaining memory / storage space is adequate. Eg: A Mac usually needs around 50 Gb free in order to operate smoothly, and perform all the tasks required of it. (Storage space in iCloud is different from Mac storage space.)
If needed: How to: See used and available storage space on your Mac - Apple Support
__________________
Should I downgrade?
Seems the way forward is generally to keep updating / upgrading.
___________________________
Or what's the solution for this?
If Mac is short of storage space ... you may want to back-up files (eg: to an external storage drive) and then delete old, unused, or large files to reclaim space. Tips to : Free up storage space on Mac - Apple Support
If it is not the upgrade process completing, or a storage issue ... we need more info. to find out what is causing the problem in order to provide a solution.
One way to find out more: View information about Mac processes in Activity Monitor - Apple Support
If you use third-party (non-Apple) apps on your Mac:
There may be interference issues with your Apple apps.
✽ Unnecessary apps like ad-blockers, virus checkers, cleaners and the like (even VPN) often cause issues. If installed, you can try turning them off (or use uninstallers from their developers) to see if that helps.
✽ Out-of-date browser extensions can also cause issues ... turn off / uninstall / or update if possible.
✽ Ensure no excessive amounts of blocked contacts have accrued from a third-party app.
✽ Any third-party apps you find necessary may need updating in order to remain compatible, and not cause issues: