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If someone has same problem, do this:
1)Turn off your antivirus. Patch 1.06 says devs fix antivirus issue, but they didn't.
2)Make exceptions in your antivirus for files (crs-handler, crs-uploader, crs-video) and then delete them manually from game folder.
3)Verify integrity of game files. Steam reinstall those files back.
4)Reinstall PsPcSdkRuntimeInstaller.exe from Engine>Extras>Redist>Win64.
I'm running the game with custom launch options (-dx11). So it starts in a small screen on the top left and I can change the video settings and play, but when I restart the game I have to go through all these steps again. Otherwise it will crash.
Update- It worked once, now it doesn't anymore.
Edit - I got it to work again, had to delete the usersettings.dat file for the game under documents. The only problem is, the choices don't show up on the screen during gameplay so you don't really know what you're choosing (really weird I know) so the game was unplayable.
However what really fixed it for me was updating my bios (as others have suggested on reddit) and my gpu driver, I'm now able to play the game on dx12.
To sum up try everything suggested by OP, if not working, update your bios, and update your gpu driver.