I discovered this by accident, doing another test. I just placed myself in the middle of the ocean at a small airfiled in Seychelles. I used the ultralight to get also the lowest FPS hit. Monitor runs at 120Hz, G-sync enabled for fullscreen and V-sync enabled at Nvidia panel, as without it I was unable to make G-sync work in Windows 11.
Without frame generation enabled I hit 80 FPS with a main thread latency around 10ms, so perfect. An OSD FPS counter in my monitor displays those 80 FPS too, so that´s consistent. G-sync also works.
After enabling frame generation in game the FPS counter in game decreases to 60 FPS, and the main thread latency increases to around 16 ms, matching those 60 FPS therefore. The OSD FPS counter in my monitor displays 116 FPS so frame generation indeed works and it´s doubling the raw FPS output from game. I already tested that feature and works well in other scenarios too. G-sync also works in this case.
But why is game showing its raw FPS reduced to 60 FPS when it was previously 80 FPS? I understand output should be 160 FPS (limited to 120 FPS as my monitor can´t work at 160 Hz), but keeping anyway the raw one at 80 FPS as before.
It appears as if frame generation is applying the typical 60 FPS cap intended when V-sync is applied in game, but game settings still show V-sync is indeed disabled both in menu and in the UserCfg.opt file. However what gets activated in game options after enabling frame generation is Nvidia reflex low latency mode, and you can´t disable it as the option is greyed out.
Cheers