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https://imgur.com/a/rEWvQ1L
Hi, I'm having the exact same problem as OP but don't have anything installed like ScreenWings. I tried locking LS to my 3070 in graphics settings but that didn't seen to help. I just updated my nvidia drivers so that may have broken something :<
if you have a cpu with an integrated gpu you should try to change it in winodws settings. If nothing works disable all overlays (idk if that's still a problem, but if you have nvidia filters turn them off.) if you have hdr enabled try disabling it or enebling hdr option on lossless scaling.
Make sure capture API is set to DXGI or WGC in LS, and try the game in different display modes (windowed/borderless).
Got it figured out, thank you guys. I think the driver update did the "optimized settings" thing and switched a bunch of my games from borderless -> fullscreen. LS is working again, I just didn't realize all my settings got messed up lol