In my book, that's the same distinction the taskmanager does: dedicated vs. shared (i.e. system memory). So, still the memory allocated, not the memory absolutely needed.
And this is not gonna change, since games and/or allocate memory very liberally in order to potentially help performance for example by having the same data in different places at once. This is nice to have, but gets detrimental once you run out of abundant free space, since the gains do not outweigh the cliff you fall off going through PCIe.