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I guess its either a bug/limitation in how LS is handling fullscreen apps or more likely something gone wrong in FS2024's end. Thanks again Gizzmoe.
A few weeks ago I found an old post that basically says that it's best to stay away from borderless whenever you can.
https://steamcommunity.com/app/993090/discussions/0/6197594023014795744/#c6197594023015630175
"the app is meant to be used with windowed (non-borderless)" sure isn't an official stance for whatever reason, the LS manual doesn't mention it and in the pinned guide the recommended setting is Borderless Fullscreen. It's good advice though, use window mode whenever you can.
You can be 100% sure that the dev knows that some users experience those problems. But, to quote the dev: "There are too many factors at play within the OS and drivers that developers have no control over". A tiny minority of the LS users experiences such problems, so it's pretty likely that it has nothing to do with LS, but some other OS/driver/whatever-sh1t. Just because there is a problem in conjunction with LS doesn't mean that LS is the cause of the problem.
I think that may be why it didnt happen in FS2020, I used DX11 there and it was more efficient with the VRAM than its DX12 mode. No longer an option in 2024, we are forced into DX12 so like for like its a bit heavier.
What's your textures setting now? Medium or High?
Then you should try it with the previous version to make sure, you find it in the Steam Betas tab. Also check your VRAM usage, lower the texture setting if you don't have enough VRAM.