@edenfinds This isn't likely to be an issue with the page file or the size of your C drive. While 23 GB isn't a lot of free storage, it's enough for Sims 3 to run fine unless Windows is trying to push a large update at exactly the same time, which I think you'd have noticed. TS3 won't use all of the available page file. A couple of questions though:
First, do you have an fps limiter running while you play? An Nvidia 1060 is powerful enough to generate framerates into the hundreds while running TS3, and that alone can cause lag. To find out, bring up the cheats console (crtl-shift-C) and enter "fps on" without quotes; a number will appear in the upper right corner of the screen. ("fps off" makes it go away.) The in-game fps limiter doesn't work, so you'd need to use an outside tool. Let me know if you need help with this.
What world are you playing in? Some have significant issues that will cause lag even on the most powerful and well-maintained computers. Isla Paradiso is the worst offender among EA worlds, although the pack itself is fine. As a test, you can start a new save in Sunset Valley and see whether you still have lag.
Does it help if you play in a clean folder? Move your entire Sims 3 game folder out of Documents\Electronic Arts and onto your desktop, launch the game to create a new folder, start a test save (again in SV), and test both live mode and Build/Buy.
You also have a few system errors in your dxdiag. These may or may not have to do with the lag; there's no way to tell from the dxdiag, since the WER entries don't even have dates on them. But if the above doesn't help, or you want to address the errors anyway, let me know.
