You have windowed selected in the pic. Windowed mode is not intended to take up the screen. If you have a 1080p screen, then 1080 is the highest you can go and would offer full screen coverage. The only way possible with this game to have 1080p in windowed mode is if you have a 1440p or 4k display, where 1080p wouldn't take up the entire screen, thus constituting the 1080p windowed mode option.
I just verified this again. Selecting Windowed mode will not give you a 1080 resolution on a 1080p monitor!
You haven't actively "fixed" anything. You just used the drivers to override the window size to take up the whole screen. The easiest solution would have been to select "full screen" and then selected the 1920x1080 resolution, as this is effectively what you did by having the driver override the software! Instead of seeing the "simple straightfoward" answer given, you had to turn something extremely easy into something difficult.
Protip for you: Selecting borderless windowed mode would automatically default the window size to the native resolution of your display, or whatever resolution is set within the windows settings. Since your native resolution is 1920x1080, that's what borderless windowed mode would run at.
You cannot control pixel density usage into windows themselves, but can done "only" on the full viewable screen itself. Resolution, in this instance, as pertaining to windowed mode or borderless windowed mode, pixel count, and NOT density dictates the size of the window only. This is why, when you select the borderless window option, that there is no select-able resolution.
Resolution works differently from full screen to windows (including borderless). Running in full screen mode, resolution affects effective pixel density usage, whereas windowed does not affect density within that window, but only the count of pixels within the window, effective altering the size of the window to whatever resolution the window is set at. In windowed mode, resolution is not really the correct word to use. It should be replaced by size.