I have a very old linux system and installed java and play framework. When I run java I get:
java -version
Error occurred during initialization of VM
Could n
It appears that the play command you run is actually a Python script which invokes other Play Framework python modules, which eventually invoke the java command as subprocess.
Looking at the source code for the code that runs for the dependencies command, there doesn't appear to be any logic to load an environment variable or anything else to specify the max heap size as the -Xmx argument. In other words, the Python code from Play which invokes the JVM in this script has no way to specify the max heap size from the default.