nijda160 Your dxdiag lists a few errors from GPU Tweak III, and a few crashes of the graphics driver. Have you been trying to overclock the GPU? If so, please revert to stock settings, and disable or remove GPU Tweak, just as a test. While overclocking shouldn't cause this particular issue, anything is possible in theory, and it's easier to troubleshoot with fewer variables to consider.
If you haven't already, please disable any apps you use that come with overlays: Discord, Steam, etc. Disable the EA App in-game overlay as well, under Settings > Application.
And you probably found the recommendation already, but just in case, try playing in windowed mode. If you can't reach the setting within the game, you can edit Options.ini, in Documents > Electronic Arts > The Sims 4, to set fullscreen to 0 (zero).
If that doesn't or didn't help, please try playing in a clean boot:
https://support.microsoft.com/en-us/topic/how-to-perform-a-clean-boot-in-windows-da2f9573-6eec-00ad-2f8a-a97a1807f3dd
The one service to leave enabled is the EABackgroundService, which the EA App needs in order to run. Disable the rest as described.
When you reboot your computer, go through the Task Manager's background processes list shutting down any service that doesn't absolutely need to be running, for example anything from MSI Afterburner to RGB software might still be enabled. If you accidentally kill a critical process and it doesn't restart on its own, just reboot your computer again.
Don't open anything other than Sims 4 and the EA App while testing, not even a browser window.
If this helps, you can selectively reenable services until you find the culprit, then either leave that disabled or (if it belongs to an app you want to keep using) let me know what it is so we can try to fix the underlying issue.