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Second check to see if Steam in its settings has hardware rendering for the client turned on or off and toggle it then restart steam to see if its better.
Its nice to assume used RAM and VRAM translate to a performance delta even though benchmarks show that not to be true but what eves, who needs facts when you can just come to random conclusions.
As far as that doing anything, well now we know (welcome to trouble shooting).
As another test you could try using the flatpak version to see if the same issue creeps up and dif it does you may has a configuration issue in your system. If it doesn't you might need to grab a lib of somekind.
And in regards of performance, sure it won't matter in most games, but for those heavy ones (such as aforementioned Cyberpunk) where every bit of performance is necessary, it will make a difference. Especially in such CPU-bound game.
This has been benchmarked over and over. No, lightweight DE/WMs do not net you any more performance in games unless that extra RAM used puts you in to oom territory.
The DE isn't rendering while you are gaming so no its not stealing from you, plus most of that VRAM used gets surrendered while the game is rendering.
How exactly did you install it?
What method are you using to launch it?