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Playing on the Steam version
I don't recommend disabling it globally because there are many games that benefit from it, but Oblivion isn't one of them.
Even on my 7900 XT, it caused serious microstutters at any framerate, whether locked at 30, 60 or 100.
AMD Ryzen 7 5800X 3.80ghz
32.0 GB
RTX 3070
Ran it on 1080p, medium settings/frame gen and i CAN get a smooth 90 fps, but as soon as i get into a new zone. It will stutter and drop all the way down to 31fps and will not change. No bottlenecks, and GPU has plenty of go and CPU only at 50%. Absolutely horrible optimisation and is the only game that i now currently own that i can not run.
All i can do is wait out for an actual patch as i don't want it to sour my experience.
Unreal Engine 5 can eat an absolute fat one.