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@allObjects
Lack of memory is probably less the issue... it is that ESP8266 has a watchdog that kicks in when in 'uninteruptable'/busy/'tied up'/in 'tight loop' (even though it is not really a loop) state for more than a set time. ESP8266 firmware can only take a break from serving the Wifi communication part for that set time to serve other things. I wonder now if one wire gets ESP8266 in such a tied up state... and you cannot break up the code into small enough pieces that this watchdog does not kick in.
So it is not directly
It is that one processor takes care of the tying up things, such as talking 1-Wire, while the other one takes care of the high-maintenance drama queen called Wifi... And when both have some time in between their first/high priority tasks, they have a great time together - exchanging a few bytes over slow serial, which is interruptable and buffered... - they work in combination...