K1mmmy Since it's a simple test, please try playing with your computer offline. You can sign into the EA App and put it in offline mode, then disable wifi and/or disconnect the ethernet cable before pressing Play. I'm not saying you need to play like this in general, only that it's a useful test. If it helps, try keeping your computer online but putting the EA App in offline mode.
The Sims 4 errors in your dxdiag are somewhat generic but can be related to a bad graphics driver. It's not conclusive, which is why playing offline is a better first test. But if that doesn't help, please do a clean uninstall and reinstall of the driver, as described here:
https://crinrict.com/blog/2019/02/clean-re-install-of-graphics-drivers-with-display-driver-uninstaller-ddu.html
Rather than using the newest driver from AMD, try 25.12.1 from December:
https://www.amd.com/en/support/downloads/previous-drivers.html/graphics/radeon-rx/radeon-rx-7000-series/amd-radeon-rx-7800-xt.html
It's simple enough to update from there, whereas going backwards requires using DDU to remove the newer driver again. If you'd prefer, you can start with the driver from August instead and update incrementally from there. That driver is new enough to be compatible with Sims 4, and in fact it's somewhat widely used since it also supports older AMD GPUs.