Increase memory and reduce ncpus for VM

[willgearty]

This does the following to possibly improve VM performance:

• Reduces the number of CPUs (based on the recommendation here)
• Increases the allotted RAM to 1/4 of available RAM (based on the recommendation here)

I was also playing around with runserver_plus and found that it only worked when I reduced the werkzeug version, so I pinned that and included that here, too.