Evan, from your screenshots, I can see that the memory demand values and
the /proc/meminfo values do match closely to each other.

On the 16.04.01 VM, /proc/meminfo shows Committed_AS value is ~1800MB.
The balloon driver then adds a buffer of ~300MB (this buffer is
calculated according to how much total memory is assigned to the VM). So
~1800MB + ~300MB = 2100MB matches closely with the 2088 MB memory demand
that you're seeing from the host.

A similar calculation on the 15.10 VM also shows that the meminfo values
match closely with the reported memory demand. (~2900MB committed +
~500MB buffer = 3400MB compared to 3600MB)

The main culprit in both cases appears to be the large amount of
committed memory. Would be worth investigating what the cause of this
memory usage is.

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Packages, which is subscribed to linux in Ubuntu.
https://bugs.launchpad.net/bugs/1584597

Title:
  Hyper-V Memory Ballooning re-broken in 16.04

Status in linux package in Ubuntu:
  Triaged
Status in linux source package in Xenial:
  Triaged

Bug description:
  Regression: #1294283 fixed memory ballooning in Hyper-V in 14.04, but
  the bug has returned in 16.04.

  
  Steps to reproduce:

  1. Create Gen2 Hyper-V VM
  2. Install Ubuntu 16.04
  3. modprobe hv_balloon
  Memory usage according to Hyper-V Manager will not change

  
  This has been reproduced on 2 fresh Ubuntu Server 16.04 instances.

  I installed linux-generic-xenial on a 14.04 instance, rebooted,
  modprobe'd hv_balloon and memory usage in Hyper-V Manager reduced to
  the correct level.

  Environment:
  Host: Windows NanoServer 2016

  Ubuntu Server 16.04 version_signature: `Ubuntu 4.4.0-21.37-generic 4.4.6`
  Ubuntu Server 14.04 version_signature: `Ubuntu 4.4.0-22.40~14.04.1-generic 
4.4.8`

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