@zelneciaaaa Even though you have Sims 4 on an SD card, it still matters how much free space you have on your internal drive. 1.9 GB isn't even enough to account for Windows's temp files, much less any other files generated by the game. And the lag you're seeing could be entirely due to the low storage.
Normally I'd suggest clearing up at least another 20 GB, but with such a small drive, you may not be able to manage that. Try to get to 15 GB free though, if possible; the Downloads folder is a good place to look for extraneous files. When you're done, restart your computer and see whether Sims 4 still lags.
Some of the errors in your dxdiag could be caused by a corrupt graphics driver, but since they could also be related to the low storage, there's not much point in reinstalling the driver until you've addressed the storage issue.