Hello @Mladenovic, Dusan (EXT)
In a Dedicated hosting plan, when you manually scale out your function app, you are increasing the number of instances of the Functions host, not the number of VMs. Each instance of the Functions host shares the same resources, including the 16GB of RAM, with the other instances running on the same VM.
So, in your case, when you manually scaled out to 3 instances, you got 3 instances of the Functions host running on the same VM, each sharing the 16GB of RAM and other hosting plan resources.
If you need more resources for your function app, you can consider scaling up to a higher pricing tier with more resources or scaling out to more VMs.
I hope this clarifies your query.