The issue is potentially broken video memory management. As people have pointed out, the game is reporting a lower memory allocation than, for example, MSI Afterburner. The missing/blurry textures likely start to appear when the physical memory is at full capacity, while the game thinks it still has a couple of gigs unused. This would explain why it works for some after changing/lowering the graphics settings (and by that reloading the textures), installing a different driver (purging the system wide video memory), and why it starts to reappear for some users after a while.

The issue is potentially broken video memory management. As people have pointed out, the game is reporting a lower memory allocation than, for example, MSI Afterburner. The missing/blurry textures likely start to appear when the physical memory is at full capacity, while the game thinks it still has a couple of gigs unused. This would explain why it works for some after changing/lowering the graphics settings (and by that reloading the textures), installing a different driver (purging the system wide video memory), and why it starts to reappear for some users after a while.

Same issue here. 5800X, 3070 Ti, 32GB, 1TB Gen4 NVME, getting blurry textures with and without the HD texture pack.