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I went back to it and now everything is fine.
Fine, you do your thing - but given a choice between having a playable game but ever so slightly gimped performance, or not being able to go more than 10 minutes between crashes making the game almost unplayable for long stretches in certain environments then I know which one I would pick.
And your opinion doesn't alter that this fix appears to work reliably whereas changing all of the other graphics settings merely changes the regularity of the TDR timeouts rather than preventing them altogether?
Also in my case Driver rollbacks had zero impact on the crashes.
IMO, we should open the appropriate technical support ticket and request a game patch or a GPU driver update that resolves these issues and does not cause new ones.
Im wondering whether Bethesda hard-coded the reference design GPU frequencies for AMD RDNA3 cards into the game engine as part of the frame pacing or other GPU related functionality. Exactly the same GPU drivers play nicely with all my other games, so definitely points at the game engines use of GPU resources more than just being a driver issue IMO.
So for anyone continuing to suffer Driver timeout issues on RDNA3 cards, make sure to test de-clocking it to reference design speeds to see if that helps, as well as the usual suspects of disabling FSR, VRS or Film Grain.
Up to you if you decide to make that a permanent solution for this game or not - but at least you will know if thats the root cause of your instability and crashes.
For reference mine is a Power Color RX7600 Hellhound (the middle of the range model)
Basically the factory overclock that you paid good money for is unstable. The very least I would contact power color and see what they have to say, but honestly I would RMA because technically the GPU is faulty.