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So how are you 'checking space' of the guest? Looking at the bundle size in finder?
There's a bug in MacOS that bundle sizes may not be accurate (I have a multi TB one that shows only a few K). Look inside the bundle and see what the total actually is.
I presume you did not create a snapshot of the 25GB version of the guest?
Other ideas: 1) verify that the snapshot file was actually removed from the bundle. 2) open terminal and use tmutil to remove all local snapshots, and 3) reboot the host.