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Don't use 720p.
I recommend (and use) the following:
In game settings
Resolution (in-game): 1920x1080p / Window mode
I do not recommend using any upscaler ingame, but you can try if the fps are not good enough.
Lossless Scaling
Scaling mode: custom
Scaling factor: 1.23
Checkmark the setting below
Scaling mode
LS1
Sharpness 1 (depends on preferences and game)
Performance: Off
Frame generation
Frame Generation: LSFG
Lock cursor: Yes (some games it's better to use No)
Show FPS: Yes (if you want)
Then you hit Scale and switch to Dragons Dogma/Game. You should notice a little window movement in the next 5 seconds and you are good to go.
The LSD thing that you talked about can be adjusted with the game and lossless settings
Not sure if it's a setting issue or the app actually chugs that many resources.
I only had the framegen active since I was already upscaling in-game via dlss and the game was set to borderless windowed. (I also have a 2nd monitor which seemed to cause some weirdness when activating)
I read somewhere that you have to turn off steam overlay ( I only had the fps counter) otherwise the performance is negatively affected.
Any help or tips on how to set up?
Running on a 3060 Ti, Ryzen 7 5700G, 16gbram
That's ghosting, means you probably have low fps and low fps + framegen creates stuff like ghosting. Some rigs just won't get great benefits of framegen on certain games. This might be that case for you.