Textures/Shaders not loading despite using RTX4080

It seems after the latest patch, either due to NVIDIA drivers, or the game patch or both, the visual quality of the game has deteriorated hugely.  I am using an Ultra Core Intel 9 CPU and Nvidia RTX4080 Super (with latest drivers).  In the attached image you can see the quality of the game with ULTRA settings at 4K! Although it make little difference if I switch to High or other.  

I have tinkered for hours with graphics and other game settings trying to correct the problem but I had no luck. Its a pity since the visual quality was one of its best aspects and now I don't even feel like playing it with such bad quality. 

This looks like a texture or shader bug to me and any ideas on how to fix this would be appreciated.