I'm using an 8GB MacBook Pro and it doesn't crash it.
I haven't used Classify before, but based on the documentation, this looks to me like a cleaner implementation:
data = Table[i -> RandomReal[{i, 1 + i}, 1000], {i, 0, 9}]
Classify[Association[data]]
Maybe try that form or one of the others in the documentation? But the obvious difference is that you're on M1, so maybe we can get other M1 users to test...