I can neither reproduce the issue with podman and cgroupv2 nor with docker and cgroupsv1. In both cases I'm getting a MemoryError as expected:

# podman run -m 1G --cpus 1 python:rc-alpine python -c 'x = bytearray(80 * 1024 * 1024 * 1000)'
Traceback (most recent call last):
  File "<string>", line 1, in <module>
MemoryError

# docker run -m 1GB fedora:33 python3 -c 'x = bytearray(80 * 1024 * 1024 * 1000)'
Traceback (most recent call last):
  File "<string>", line 1, in <module>
MemoryError