How is dram for variables allocated?

[CyBaart]

I am using a WT32-SC01 with an ESP32-WROVERB and developing a GUI using Squareline Studio v1.4.0 and Arduino IDE v2.3.2

When I build the app, I now get the following error 'region `dram0_0_seg' overflowed by 16 bytes'

When I remove one global variable which uses 96 bytes, it builds OK and reports 'Global variables use 124496 bytes (37%) of dynamic memory, leaving 203184 bytes for local variables. Maximum is 327680 bytes.'

This just does not make sense to me. How does the dynamic memory get allocated? Are there options which can be changed regarding dynamic memory like the partition options for the code/OTA/FS in flash? If so, where are these options and how do I set them?

Thanks, Steve.