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Edit: I'm including a snapshot for the record in case anyone else finds this thread.
https://imgur.com/a/NOHx0K5
Interesting. It works like half the time for a friend of mine, but I couldn't get it to work even once with DLSS enabled. Worked just fine in the beta though.
I wonder if it has something to do with me forcing DLSS 4 through the nvidia app.
I think it's exactly that. When I turn off forced latest DLSS in the app and go back to the in-game DLSS, Steam recording works again consistently (but the game looks and performs worse with those models for some reason, at least on my PC).
Yeah, DLSS4 is a massive improvement over DLSS3. Looks and runs a lot better. I really don't want to go back to using the previous version either.
Hope Steam rolls out a fix soon, or Capcom optimizes their game properly (preferably both lol). Recording clips with Nvidia Shadowplay still works just fine for me, so it should work, I think.
The real puzzle for me is I disabled all DLSS, app and in-game, and switched on the in-game AMD FSR with frame gen on and the AI upscale model, and now I get 75-85FPS instead of 45-55FPS... on a 3080. (Steam recording still doesn't work by doing that tho and I haven't tested Shadowplay)