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The location has a path like this:
C:\Users\(Your Account)\OneDrive\Documents\Rockstar Games\GTA V
And yes, this is the ultimate solution
Whatever R* broke is reset by deleting the settings.xml file.
Otherwise - problems with the actual rockstar games folder in my documents (can rename entire rockstar games folder to -old to test - don't use cloudsync when asked, use local), corrupt/broken saves, other corrupt files in that folder, lack of admin/permissions (possibly run steam/r* launcher as admin), corrupt vcredists, missing media feature pack on N/KN windows installs, direct issues, possible gpu driver issues, usb devices, background programs/overlays, antivirus/security/controlled folder access, connectivity, and....
mods. busted/broken/outdated/corrupt/incorrectly installed storymode mods (because uninstall/reinstall doesn't clean them) are also potential causes. In the case of mods - delete dinput8.dll from the gtav game folder to test (if you use a 'mods' folder). If you don't use a mods folder - can still delete dinput8.dll but likely need to verify game files (something everyone should do anyway before even posting -.-) if using openiv.
/gooduck.
Your issue might be different from what TC and I had. TC was talking about changing settings to lower quality, which was also my case, lowering some stuff in the graphics tab of the in game settings resulted in the game refusing to launch properly after it asked for a restart, freezing on the loading screen for a moment, then closing on it's own.
Deleting Settings.xml means, that the game will realize the file is missing and will create another such file with default settings. Default means the exact same setting the game had, when installed on your system for the first time. If your issue is different, if you've never touched the in game settings, deleting this file won't help you.
Freezing and closing could be caused by many issues, not just fiddling with the in game settings.