I found the ultimate settings try this:

The following settings allowed 60 FPS with beautiful results for graphics

GRAPHICS

Graphics Game preset: steam deck Texture Quality: High Dynamic Resolution Scaling: Off  FidelityFX Super Resolution 2.1: Quality FidelityFX Sharpening: 80  Field of View: 90  Film Grain: Off  Chromatic Aberration: Off  Depth of Field: Off  Lens Flare: On  Motion Blur: Off  Contact Shadows: On Improved Facial Lightning Geometry: On  Anisotropy: 16  Local Shadow Mesh Quality: Medium  Local Shadow Quality: Medium  Cascaded Shadows Range: Medium  Cascaded Shadows Resolution: Medium  Distant Shadows Resolution: Low  Volumetric Fog Resolution: Medium  Volumetric Cloud Quality: Off  Max Dynamic Decals: High  Screen Space Reflections Quality: High

Keep the rest of the settings as they are!!!

Under video: VSync: 30 Maximum FPS: 60 Windows Mode: windowed borderless Resolution: 1280x800

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Try medium or Steam Deck preset and Xess instead of FSR. Lock to 40fps and you should be good to go. Or check some YT videos