Hi,
Thank you for your interest in NXP Semiconductor products and for the opportunity to serve you.
1)Is there anything else I need to do to increase the memory availability?
-- As we know, the the MIMXRT1160-EVK board has two W9825G6KH, it means that the total size of the on-board SDRAM is 64 MB.
In the below figure, it consist of two parts: BOARD_SDRAM and NCACHE_REGION, when you increase the size of NCACHE_REGION to 32 MB from 16 MB, BOARD_SDRAM needs to decrease the same size.

Hope it helps.
Have a great day,
TIC
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