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Also like chase said check your Nvidia control panel settings.
You're talking about the copy in your Documents/My Games/Oblivion folder, yeah? The one in the game's installation directory is just a template.
If you're running Windows 10 and have Controlled Folder Access enabled, you'll need to add an exception for Oblivion or it'll have trouble writing to your Documents folder at all. Likewise, if you're running any third-party security tools, there's a good chance they have a similar "anti-ransomware" feature that's messing up the game.
Reckon there's still some tool on your system you've skipped over.
You may be able to work around it by right clicking the game's executable in your file explorer, and selecting the option to run it as an administrator.