That is correct. You can search the forum archive to see how others have addressed this same error. Unfortunately, allocating more memory to the virtual box and using a more powerful computer may be your only options.
The help documentation for all QIIME 2 actions details the outputs and their content. E.g., for this action type this into the terminal and hit enter:
qiime vsearch cluster-features-closed-reference --help
Among other details, you will see this:
Outputs:
--o-clustered-table ARTIFACT FeatureTable[Frequency]
The table following clustering of features.
[required]
--o-clustered-sequences ARTIFACT FeatureData[Sequence]
The sequences representing clustered features,
relabeled by the reference IDs. [required]
--o-unmatched-sequences ARTIFACT FeatureData[Sequence]
The sequences which failed to match any reference
sequences. This output maps to vsearch's
--notmatched parameter. [required]
Your reference sequences of choice, imported as a FeatureData[Sequence] artifact. The data resources at qiime2.org contain several pre-formatted examples.
Good luck!