PS5 locked at 1080p Resolution

When I logged in to Dawntrail this morning on my PS5, my settings were all messed up. My UI looked horrible (pixelated and incorrectly sized compared to what I saw Tuesday night before maintenance). I was really disappointed with the graphics update too.

After about two hours of messing with settings, I finally realized that the game was locked at 1080p. I would select WQHD and 4K, but the resolution would not actually update. Doing some more digging, a Reddit user suggested shutting off 120 Hz option on the PS5.

Shutting off 120 Hz on the PS5 FINALLY allowed me to update the resolution back to WQHD (and 4K). It would seem the new feature of allowing the PS5 version to uncap the frame rate is not playing nice with this feature on the PS5. Hopefully this can get fixed in a future patch, but right now...if anyone else is having this issue, shutting off the 120 Hz Screen Refresh setting on the PS5 fixed my issue.

I can say that this is really a problem.
After seeing your post, it explained why the size of my chat bot and hotbar where wrong at launch and when I turned off 120hz it fixed those issues and let me change resolution.

This was happening for my game, off and on, as well. It's a hassle turning 120hz on for compatible games, and off for my main game (FFXIV) over and over.