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I started to get the same notification about having not enough VRAM a few updated back too. But in my case game just working fine even after that. I have an RTX 3070 too.
Thank you gentlemen.
https://www.rockpapershotgun.com/forza-horizon-5-pc-performance-best-settings
Some ideas here^
Your GPU only has 8gb on board ram, so you have to be realistic and work around that.
My old build is still strong i5600k and and AMD rx480 8gb...
Don't get too carried away with running things at ultra, it's kinda daft as ultra settings don't often look much better than a blend of high/med settings, but they will make your cpu & gpu cook, for hardly any benefit.
I have a Ryzen 5950x, a 2080 Ti, and I run 1 NVME drive with a Corsair i150 cooler and I use a minumum of 500 watts (and my PSU is a Seasonic Prime 850w Titanium cert)...
Yep... and Bronze PSU also... I would be afraid to click the power button on that tbh