New update causing DXGI_ERROR_DEVICE_HUNG???? and other issues UPDATE DX11 IS THE ISSUE

[Winz]

I noticed there was a small update in steam downloads. After first boot after update i am getting an error "Your graphics device has encountered a problem and the application will exit. ERROR: DXGI_ERROR_DEVICE_HUNG (0x887a0006)

If i optimize it in NVIDIA app under graphics tab it will run. HOWEVER, the colors and brightness/contrast have been changed and look horrible in dark scenes. At Night time the sky is too bright. The whole night sky looks unrealistic now as you shouldn't every star in the city. Anybody having same issues? anyway to fix them?