https://bugs.winehq.org/show_bug.cgi?id=52065
--- Comment #4 from Ken Sharp imwellcushtymelike@gmail.com --- Tested on Windows 10 (because you never know) and there was actually some ballooning, though it peaked at around 4 GB while the redists were being installed (or reinstalled, or just checked). Unfortunately, though, I couldn't recreate this on further testing. The installation does complete successfully in Windows 10.
The launcher screen is supposed to tell you what it's doing (i.e. “Installing Windows Redistributables...”, etc.) but it doesn't do this in Wine. Indeed it is at this point when the ballooning begins.