With integrated graphics, "VRAM" is often not dedicated memory on a discrete card-graphics may instead borrow system RAM. Quentin Docter explains this directly: if the video card is built into the motherboard, it
"likely won't have its own memory but will share system memory," meaning the total system RAM is split between the OS and video usage. Docter then answers the key "where do I change this?" question: "Shared memory is configured in the system BIOS/UEFI," and some BIOS/UEFI setups allow you to set aside a specific amount (example given: 512 MB) for video memory.
That is exactly why the machine can have plenty of DRAM yet fail a VRAM check: the BIOS/UEFI allocation for integrated graphics may be set too low. Adjusting BIOS/UEFI settings to reserve more memory for the integrated GPU is the most direct way to attempt meeting a VRAM requirement (when supported).
Device Manager and System Configuration won't change reserved video memory allocation, and "Virtual RAM" (paging) is unrelated to VRAM. Therefore, BIOS options is correct.