In both screenshots, it appears that the "buff/cache" value is very
high.

Perhaps the balloon driver is reporting the "buff/cache" as in use to
the host. Can you try running following commands to flush write buffers
and free page cache?

1) sync
2) echo 3 > /proc/sys/vm/drop_caches

After running the above, do you see that the "buff/cache" value
decreases and does this result in the memory being reclaimed by Hyper-V?

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https://bugs.launchpad.net/bugs/1584597

Title:
  Hyper-V Memory Ballooning re-broken in 16.04

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