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The mod removes Forced Lumen, which would yield better performance at the expense of fancy lighting.
https://www.nexusmods.com/oblivionremastered/mods/183?tab=description
Try this as well, it'll give you a significant boost in fps and removes most if not all of the stutter:
https://www.nexusmods.com/oblivionremastered/mods/35?tab=posts
2560x1080p
ultra settings
Hardware raytracing maxed
no upscaling, no frame gen.
60+ fps average
UE5 is a PITA for older gpus. Reducing your shadows to Medium and turning off any RT settings will improve it. You can probably run textures on high or ultra.
More modern gpus that should work better will be 3080 and above from the Nvidia line (So 4070 or above is about equivalent to 3080)
or 6800xt or above on the AMD side of things.
https://www.nexusmods.com/oblivionremastered/mods/183?tab=description