Strange shadow pop in at max settings

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Hello

I've had this problem since installing the game(no mods) and couldn't find a fix for it so I installed some LOD mods but they didn't fix this either.
Checking on/off each setting one at a time, I managed to isolate the issue to "Local Shadow Quality". Turning it to any setting besides Off causes what's shown in the video.
Drivers are the latest version, game is the latest version. Issue happened without mods and with the few LOD mods I installed.
Any advice is greatly appreciated, I've only played this game on PS5 so I'm not sure what to do here.
I am using a 9070xt + 7800X3D + 32gb + SSD on Windows 11


Video showing the bug

Someone told me its "vanilla shadow pop in", but I have Ray tracing shadows turned on so why is this happening?
 
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That happens also some light and reflections also behave strange. Also you should not install new windows update (for now). I think there is a need of a new update for cyberpunk.
 
I think something did change in Windows with the latest update(s). I've seen people with quite a few graphical issues popping up in a number of different games lately. Not sure what's behind it, but waiting on the Windows Update stuff, if possible, is a good idea. Might be that something changed with DirectX or how other things in Windows itself are handling calls from GPUs.
 
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