Tools like Reshade and the like are not viewed as bannable however should be put tread with utmost caution for many reason. Reshade and even ACT(as are overlays, and don't actually modify game data. The tools don't actually affect game data and are akin to something you would have in gpose. To prove a point I grabbed an old post from the forums where this issue was discussed with a different program that did things similar (on an image overlay end)


A mod for example where you alter the data (like a miqote tailed lalafell, or a naked character) would be banned as you're using SE's data (Character in this case) and are changing the data around. Same with the plugin Yoshi-p mentioned that dropped markers for TEA.

To compare your Nvidia, I think an option is to look at Discord Nitro. Discord is a third party tool, but also has it's own overlay and streaming functions which can be used in XIV. Again this isn't altering the data however you are using a third party tool in tandem with the game while you may think it's bannable it's out of the gray area since it's again not altering data.

Third party tools are such a tough concept to analyze which is why they went so into it, to explain that they can't decide that this specifically can't be used, because someone will absolutely find an alternative and use that instead. It's better for them to actually request you post like that here since it does offer more insight to others as to what these programs can do and what they should not be allowed to do.

TlR To me it is allowed, but not supported.