[php] Fatal error: Allowed memory size of 134217728 bytes exhausted (tried to allocate 32 bytes)

128M == 134217728, the number you are seeing.

The memory limit is working fine. When it says it tried to allocate 32 bytes, that the amount requested by the last operation before failing.

Are you building any huge arrays or reading large text files? If so, remember to free any memory you don't need anymore, or break the task down into smaller steps.