Does 'Everything' monitor file system changes? Yes, 'Everything' does monitor file system changes.
1,000,000 files will use about 75 MB of ram and 45 MB of disk space. In the next Windows (capture image metadata) leave the Image Name and Image Descriptions alone, and click on the Browse button.A fresh install of Windows 10 (about 120,000 files) will use about 14 MB of ram and less than 9 MB of disk space. Right-click on it, and choose Create Capture Boot Image.
Highlight the 'WDS - Windows XP/Vista Deployment' image name in the right pane of the WDS gui (this is the image you just created in Part 1 above).