xExpanding disks

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What happens when you  create an insane amount of HD space for the virtual hard drive., much more than that on the host? Given you can do this on expanding disks, because the “used space” is only filled as needed, does this mean regardless of what Windows says, you’ll always run into the host’s limitation ?

 

e.g  Windows 2012 server below |  120 Gig on boot disk  in VMWare Fusion|  5.74TB free on extended.

 

 

But on MacOS SSD is only 250Gig  capacity

 

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