this post was submitted on 31 Oct 2023
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Based on my 60 seconds reading on it, onboard GPUs typically share the systems RAM. It is usually a fixed amount from my understanding. Dynamic caching seems to allow the GPU to only consume what it needs. Without knowing more, I'm guessing this means it frees up more RAM for the system instead of holding a fixed chunk in reserve for the GPU, or, on the other side, allows the GPU to use more RAM than some predetermined fixed amount.
https://www.imore.com/mac/dynamic-caching-and-its-m3-chips-could-be-the-secret-to-apples-mac-gaming-plans