DLSS3 alone can't carry 40 series cards. There just isn't enough 'there' there to handle native 4k in a graphically intensive game, even with Frame Generation.
I'm replying to myself to expand on this point as an FYI.
Vanilla, strictly speaking Vanilla, 2077 4k Psycho can be ran with a 4090 above 60 FPS. It will dip here and there, but 4K with all the bells and whistles is just that demanding, so the 40 series needs DLSS2 as well. I'm not talking about HW dependent software like DLSSG(Frame Generation), just the raw amount of physical CUDA Cores - I can't speak to RT cores such as if the higher amount on the 4090 increases the rate instrutions are handled through the API or it processes the data in a way that it can handle higher ray counts specifically or resolution much faster.. bleh. Things like Astonishing crowds, insane traffic density, ini configs that increase RT reflection resolution or negate Sampling bias on the other hand - nope. Too much geo, too many shaders, too many shadows, etc.
You need DLSS 2 to carry it. Analysis shows that DLSS is really good at capturing data even lost at native resolution. I use DLSS Quality, but DLSS Performance at 4K still provides a more crisp image than native 1440p. There's really no reason to not use DLSS at higher resolutions.
FYI - People here and elsewhere insist, because some rando on Reddit said, that it can be run on 30 series and even 20 series cards... even though this individual never provided proof and even listed some bugs. DLSS3 accesses the depth buffer, so it can competently construct entire frames and not just pixels - and likely to keep RT from wigging out (I'm only guessing on that though) as RT is reliant on presently streamed materials and geometry to render in the player view.
While I would love to bash another corporation, it's not entirely unreasonable to believe this won't work on previous gen cards. And while I like giving CDPR a hard time, It's not her fault people aren't aware.
Frame Generation... seemingly works exponentially. Alone it won't do much because it doesn't actually improve baseline performance, but it interprets and injects new frames. The more frames you feed it, the more it will spit out. If you're posting 20FPS, you probably won't even get 30 in return. If you're posting 90 with DLSS Quality or Balanced; You get the massive 'uplift' toward 130-140 FPS. It will not stabilize FPS from what I've seen, as it really only smooths rendering through injection, so if you're FPS is dipping quite a lot - it will do so in kind. You can cap the game at 58 FPS through Riva and NVCP as I do (I don't have a GSync gamer monitor) to ensure stability and reduce screen tear while pulling out every pit of fidelity possible though.
These are reasons why they have not, and will not, remove DLSS 2. Sounds like they cocked up this patch. I can't say so myself as I haven't tried it out and am uninterested in the game until Overdrive or 1.7 are released so I can be sure working on my mods is worthwhile. I believe it when people say it's got problems though. Par for the course.