I've compiled this guide just to detail all the settings that helped me out the most in my endeavour of making this game an immersive cinematic experience.

I've went from like 50-60fps in 1440p with FSR to now 60fps in 4K with DLSS. Quite crazy for a mid tier GPU from 2017.

My System Specs:
-OS: Windows 10
-GPU: Sapphire AMD Vega 64 Nitro+ 8GB (comparable to an RTX 1080 or 2060), overclocked to the limit
-CPU: i9 -9900K, overclocked to 4.8gHz on all 8 cores
-RAM: 48GB HyperX 3466 mHz
-Mainboard: Gigabyte Z390 Designare


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The game can have some severe blur in it the lower you go with the resolution, because it seems to be built around 4K.


Solution:
You have to set TAA to medium, enable FXAA and turn up the TAA sharpening to like 3/4 or where you prefer it better.
Boom, all the haziness is gone.

This will only work if you are in native resolution, because if you enable DLSS you can't also enable FXAA. I would argue however that upscaling will probably allow you to go much higher in resolution though, so that the game looks much sharper in general, which should fix the problem that way. So I'd consider this more of an enhancemennt for people who already have powerful rigs to run it in native resolution. Try it both ways and see which one you like better.

UPDATE: I recommend you now try the latest Beta-3.03 version.
https://www.nexusmods.com/site/mods/757
This is the absolute game changer you wished for.

This mod requires the game to be run in VULKAN only, instead of DX12.

"This all-in-one package allows the users of any DX12 compatible GPUs (from NVIDIA / AMD / Intel) to enable DLSS upscaler in most of the games implementing NVIDIA DLSS 2 / DLSS 3 features."

Installation:
Make sure you locate the right folder for the installation
The path should look something like this:
D:\Programs\Steam\steamapps\common\Red Dead Redemption 2

Have those things checked during the Installation if you have an NVIDIA GPU:


Have those things checked during the Installation if you have an AMD GPU:


If you have an AMD / Intel: After installation find the "DisableNvidiaSignatureChecks.reg" file in that folder and run it.

That's it. You're done. Now it should work. You can modify it with the instructions from the readme file if you wish to.

Now below the V-Sync option you should have NVIDIA Reflex Low Latency. On should be selected if you're CPU bound, On+ Boost if you're GPU bound. You can also just test both and keep the one on that gives your generally more FPS.

Now further down you will have the NVIDIA DLSS option. Adjust the quality to achieve your personal fps target. The Ultra Quality preset doesn't provide much of an fps bonus, but the Quality and Balanced preset can boost your fps up to 50-70%.


If you wanna uninstall it, run the "unins000.exe" in the folder.

---

If you're using this, it's highly recommended you swap out the upscalers DLLs for the most recent ones with DLSS Swapper.

"DLSS Swapper is a tool that allows you to conveniently download, manage, and swap DLSS, FSR and XeSS dlls allowing you to upgrade or downgrade DLSS, FSR and XeSS version in a game without the game needing an update."

https://github.com/beeradmoore/dlss-swapper?tab=readme-ov-file



This is an insanely great tool, I am so impressed with it. It could not be easier and reverting the changes is also an inbuilt function.

NOTE: if you use the DLSS Enabler, the swapping should be done after the installation.

It is a known thing that people do, more commonly known in multiplayer games where everybody's desperate for every fps they can get. Here another article explaining the same thing, so you don't have to take some random Youtuber's opinion at face value:
https://www.toolify.ai/hardware/unlock-the-full-potential-of-dx12-games-improve-performance-and-stability-2856272

I got around 8% of performance gain out of this. It will depend on your system though how much this does for you. It's said to improve FPS and resolve stutters some systems might experience with DX12. You can do this for all games you know that run on DX12.

You can pretty much copy the settings shown below. Credit to BenchmarKing.

As touched on above, me and many other people feel like the game in general looks too blurry when you're not around 4K resolution, stemming most likely from being built on 4K resolution and apparently not really optimized afterwards for downscaling, as the anti aliasing settings can start clouding up the image.
Resolution means picture detail and quality. So it is, among a few other settings, one of the most important for visual fidelity.

So what I would suggest is this:
Depending on your hardware limits, I would say set the resolution as high as you can before your GPU takes off flying and balance it out with DLSS on Quality or Balanced Preset to come up to 60fps. That's what I play for the highest image quality possible with my rig. I'm on 3840 × 2160 with DLSS on Balanced and have 50-60fps depending on the scenery.
If that's not enough FPS for you or your hardware holds you back, try lowering the resolution bit by bit until you achieve your desired FPS target. Up for you to decide if it makes more sense going higher in resolution and Balanced on the preset or lower in resolution and Quality on the preset. Try both out. I think I achieve a better picturre with higher resolution and lower on the preset. I wouldn't go to the Performance preset though, if you can prevent it. Performance preset seems to destroy the image in some ways.

If you liked it, disliked it, whatever you may feel, please leave a rating. If it helped you out and you're happy with the results, leave a Steam points award. Comments are also appreciated.

https://www.msi.com/Landing/afterburner/graphics-cards

If you cap to your refresh rate and given that your average fps never dips below that, you will have the lowest input latency with no screen tearing and no need for any additional features like V-Sync, Radeon Enhanced Sync / NVIDIA Fast Sync, Radeon Anti Lag / NVIDIA Low Latency (NULL).
A lot of those will in fact make it worse, if combined unfavorably and cause more stutters and have higher input latency, than just capping your Framerate with RTSS. It is hard to believe, since they all sound so good and you'd think everything's cross compatible, but no. There's no one size fits all answer, but I'd say turn everything else off to start off with, cap your FPS with RTSS and then go from there.