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When put in windowed mode, the game runs smooth as butter without issues. The annoying part is that it's not full-screen. All the problems are fixed.

For example, my screen is 4K, and when it puts the game in 4K or 1080p, it will run on full screen (even in windowed mode). So, I run it in a resolution slightly lower than 1080p, which fixes the problem. The game is playable again.

I hope this saves someone time in the future. I tried all the fixes, DLL files, INI scripts, etc., on YouTube, but none of them worked.

Side note: If you want to play with a controller, download DS4 and leave it in the default configuration. It thinks my PS5 controller is an Xbox 1 controller.