WP Configuration – Difference between PHP memory limit and WP memory limit?

Another post is similar: PHP Memory Limit vs WP Memory Limit

However, there is only one answer to this and it is clearly not answering it.

My question is, is there a 1024M PHP memory limit on my server for all my sites on it. But a plugin is showing that although my PHP memory limit is good, my WP memory limit is only 40m and I should increase it. Should I increase it or ignore it?

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