Not sure if this thread will be accepted since it doesn't follow the main rule of 1 bug per report/thread. But to add to the DLSS issue and its implementation:

As said by OP, DLSS disengages, or bugs out, when interacting with any kind of object that will display a menu (Aetherites, NPCs, Aesthetician and retainer bells, quest elements like waiting spots, etc.), as well as during all cutscenes (this is most noticeable in the final 2 areas of Dawntrail).

Additionally, the current DLSS customization options are kind of black boxy at the moment, and its behavior, erratic. At least as perceived by a normal user. I would like to propose a few improvements, hopefully they are well received.
  • The ability to select a target framerate, while it may seem easy to understand, actually makes it harder to know what is going on when the game's visuals don't display any difference when trying the different modes (30, 60, always on).
  • It would be ideal to have the option to select between Framerate target (For 30 and 60 FPS, maybe adding 90 and 120), and Resolution Target (for the options explained below).
  • In order to properly take advantage of the DLSS feature, it would be a lot more user-friendly to have a similar resolution scaling slider as the FSR setting, as well as a sharpening slider ( as proposed above). However, 4 different quality settings (Ultra Performance [50% res], Performance [65% res], Balanced [80% res], Quality [90% res]) as used in many other games, could be even more user friendly. Having both methods would be ideal, however. Additionally, adding the ability for the game to engage Dynamic Resolution (jumping to a lower quality DLSS preset) when FPS dips below 30/60/90/120 would be a definite plus, but only if optional.
  • Enabling and disabling dynamic resolution on DLSS mode is also something that should be possible. More often than not, DLSS processed images tend to have a higher image quality overall even when they come from lower resolution rendering compared to their native counterparts.
  • Being able to use Anti-Aliasing modes while DLSS is engaged would provide an additional way to reduce image noise.
  • Finally, related to the AA modes, adding a Super Sampling mode that could be used in combination with DLSS/FSR would close the circle in a best case scenario implementation of the different technologies, allowing, for (as an extreme) example, 4K Super Sampling on a 1080p screen, which would be a lot less expensive and would provide an incredible image quality uplift. Super Sampling by itself would also be most certainly welcome, more so if it was useable in borderless windowed mode, since currently, it is only available through Nvidia/AMD control panel, and when using borderless or windowed modes, the window takes on the targeted Super Sampling resolution, making it impossible to play, as it goes beyond the screen's limits.

This has also somewhat become a feature request, but it is, in the end, what usually works best with DLSS, since the objective is to have a better visual presentation at a cost selected by the user.