This bug (CTD during loading MSFS 2020) has been with us since January 30th, 2025. Since driver version 580.88, CTDs during MSFS 2020 loading with DX11 selected in the game settings occur even without the NVIDIA app installed, so the situation is now even worse than before.
If you want to have the latest NVIDIA drivers installed, MSFS 2020 must be set to DX12 instead of DX11 until NVIDIA, Asobo, Microsoft release a fix.
Please make sure to participate in the linked thread to confirm you’re also affected by this bug.
WORKAROUND
Until Nvidia fixes drivers and Asobo MSFS 2020 please check what happens if you select DX12 instead of DX11 by manually editing cfg file.
To do this, you need to edit usercfg.opt file and modify the line
PreferD3D12 0
Change the number 0 to 1
and save the changes.