XPS 13 9350 VRAM

It's not an error and there's nothing you can configure to change this.  The GPU always has at least 128 MB of RAM dedicated to it, and then it can potentially use system memory as VRAM if the system isn't using it for general system purposes, which is why that's called shared memory.  If the system wants to use that memory space as general system memory, then the system gets priority, which is typically what you'd want anyway because if the system needs the extra memory, then you'd get better overall performance by allowing the system to use it rather than restricting system memory just to give more to your GPU.

So 1 GB might be the max the GPU can possibly consume, or it might be the amount allocated to it.  I'm not sure since I don't use that utility.  As a reference point though, when I check Intel Graphics Command Center on my system with an HD 630 GPU and 32 GB of memory, it shows that the Intel GPU has 16 GB of memory, and that would very likely be the max possible allocation on my system, since at the time I looked at that, I didn't have anything running that would reasonably consume anything close to that amount of memory.