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I just discovered that driver 546.08 has since been released, so I might give it a whirl when I get home and see if the problem returns.
So:
537.42 (Game Ready) = Good.
546.01 (Game Ready) = Bad.
546.08 (Hotfix) = Bad.
Select The Outer Worlds Spacer's Choice from the list of applications and set the graphics settings to "High Performance"
OW has always been on High Performance on my system.
If you experience the same issue, rollback to 537.42.
No worries! I think the problem might only be apparent when vsync is enabled or when the framerate is not unlimited. Some other games seem to be affected by the same problem, so hopefully a fix is forthcoming.
Older Nvidia drivers can be acquired from this page:
https://www.nvidia.com/download/find.aspx
Set Windows Driver Type to DCH.
Set Recommended/Beta to Recommended/Certified.
I haven't had a single crash or issue with 537.42, but the more recent 537.58 driver probably works just as well.
I get the impression from the Nvidia forums that driver 545.84 is where everything started to go south for quite a few games.
Uh, I didn't check before uninstalling it. Sorry. Manuel at NVidia helped me work out that disabling hardware-accelerated GPU scheduling resolved the issue with the newer drivers though. I just finished the game with the old driver because I hate to disable that.
I'll try to reinstall this game within a few days and test it out with the latest driver.
https://developer.nvidia.com/vulkan-driver
Installing these instead of downgrading the mainline driver has the advantage of still delivering optimizations and graphics profiles for the latest games.
Users of Maxwell / Pascal architecture GPUs (900s and 1000s) may want to consider keeping to the mainline drivers though, since they made changes that improved those cards' stability and performance during high VRAM usage.