Raises V8's old-generation heap limit to about 4 GB
The flag raises V8's old-generation heap limit, in megabytes, so 4096 means about 4 GB. V8 limits the JavaScript heap no matter how much free RAM the machine has. That is why the job crashes even though the machine has plenty of memory.
This is a valid fix when the job really needs more memory. But if memory use keeps growing, you have a leak, and the flag only delays the crash. Often the real fix is to process the data as a stream, piece by piece.
"Sets the maximum size of the call stack" is wrong: the call stack size uses a different flag, --stack-size. The flag has nothing to do with the libuv thread pool or with allocating Buffer memory up front.