Large file copy to iSCSI drive fills all memory until server stalls.

I am having the file copy issues that people have been having with various versions of Server now for years, as can be read in the forums. I am having this issue on Server 2012 Std., using Hyper-V.
When a large file is copied to an iSCSI drive, the file is copied into memory first faster than it can be sent over the network. It fills all available GB of memory until the server, which is a VM host, pretty much stalls and also all the VMs stall. This
continues until the file copy is finished or stopped, then the memory is gradually released as it is taken out of memory as it is sent over the network.
This issue was happening on send and receive. I change the registry setting for Large Cache to disable it, and now I can receive large files from the iSCSI. They now take an additional 1 GB of memory and it sits there until the file copy is finished.
I have tried all the NIC and disk settings as can be found in the forums around the internet that people have posted in regard to this issue.
To describe in a little more detail, when receiving a file from iSCSI, the file copy windows shows a speed of around 60-80 MB / sec, which is wire speed. When sending a file to iSCSI, the file copy window shows a speed of 150 MB/sec, which is actually the
speed at which it is being written to memory. The NIC counter in Task Mgr shows instead the actual network speed which is about half of that. The difference is the rate at which memory fills until it is full.
This also happens when using Window Server Backup. It freezes up the VM Host and Guests while the host backup is running because of this issue. It does cause some software issues.
The problem does not happen inside the Guests. I can transfer files to a different LUN on the same iSCSI, which uses the same NIC as the Host with no issue.
Does anyone know if the fix has been found for this? All forum posts I have found for this have closed with no definite resolution found.
Thanks for you help.
KTSaved

Hi,
Sorry if it causes confusion but "by design" I mean "by design it will use memory for copying files via network".
In Windows 2000/2003, the following keys could help control the memory usage:
LargSystemCache (0 or 1) HKEY_LOCAL_MACHINE\CurrentControlSet\Control\Session Manager\Memory Management
Size (1, 2 or 3) in HKLM\SYSTEM\CurrentControlSet\Services\LanmanServer\Parameter
I saw threads mentioned that it will not work in later systems such as Windows 2008 R2.
For Windows 2008 R2 and Windows 2008, there is a service named Microsoft Windows Dynamic Cache Service which addressed this issue:
https://www.microsoft.com/en-us/download/details.aspx?id=9258
However I searched and there is no update version for Windows 2012 and 2012 R2.
I also noticed that the following command could help control the memory usage. With value = 1, NTFS uses the default amount of paged-pool memory:
fsutil behavior set memoryusage 1
You need a reboot after changing the value.
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May 4 00:23:37 Orobourus kernel[0]: FusionMPT: Notification = 7 (Link Status Change) for SCSI Domain = 1
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May 4 00:23:37 Orobourus kernel[0]: FusionMPT: Notification = 6 (Rescan) for SCSI Domain = 1
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May 4 00:23:37 Orobourus kernel[0]: AppleRAID::recover() member CBDFD75C-5DC8-4089-A7AE-1EFBE0B1A6EB from set "tao.av.complexity.org" (868584D1-E485-4B37-AFCE-E7AFC3AD5BB7) has been marked offline.
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May 4 00:23:37 Orobourus kernel[0]: disk5: media is not present.
May 4 00:23:37 Orobourus kernel[0]: disk5: media is not present.
May 4 00:23:37 Orobourus kernel[0]: disk5: media is not present.
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This looks similar to another 'RAID volume unmounts' thread I found elsewhere in the forum - it appeared to have no solution apart from contacting Apple.
Is this the only recourse?
G5 2.7 6.5Gb + X-RAID 3.5Tb Mac OS X (10.4.9) Decklink Extreme / HD

There should be no need to restart the controllers to get additional reporting -- updating the firmware restarts them.
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