Having the same issues on my RTX 3060m 6gb + AMD Integrated Graphics Card, 16gig DDR5 ram and AMD Ryzen 7 5800H CPU Laptop.
No HD Textures Installed.

I have no issues running the game above 60fps 1080p on Ultra, for the first 5 minutes the textures are sharp @ ~70-80 fps 99% (Lowest 50fps). Card temps stay at 50-70C. CPU temps in 80-90s Celsius.
After running the game for 5-10 minutes the textures and LOD on hands/guns/NPCs gets blurry.
It seems that the 3060m clock speed drops by about 200-300 (From 2000 MHz to 1700MHz in Alienware Command Center), keeping my CPU at 40% utilization (resource monitor).
The 3060m chip does not get hotter than 70C in the most extraneous situations on ultra.

It also seems that the game continues to render in the background as if you're 'actively playing' it when tabbed if un-paused;
Try alt-tabbing and looking at your computers resources when un-paused, mines remain unchanged.

Further, the VRAM in the menu seems off; Indicated 3.77g of vram used in the menu when actually is using about 4.2g on Ultra.

I've tried replicating this using every setting available (low, medium, high, raytracing off, resolution 720p). I tried deleting FarCry6 from MyGames in Documents.
Even on the lowest settings the textures substantially decrease in quality within 5-10 minutes of gameplay.

I was thinking that this happens in my situation as more of the level is rendered.
I was basing it off the camo on my rifle: As I run further down the road after turning loading first into the game, the camo goes from crispy to low quality.

Interestingly enough this issue exists in Control: Ultimate Edition when using DirectX12 as well, where I believe the pooling of textures is setting itself to lowest resolution within a few minutes of runtime and is currently fixed only with a mod.
This also was observed in Monster Hunter World and Fortnite DX12 (the trees would be rendered as if you were across the map, I believe it got fixed in Fortnite's case however).

Maybe a bug with DirectX12 implementation?

The fact that the issues exist on the 3080s indicates that something limits the game from loading textures when pushing hardware, or as hardware utilization ramps up. (Check @W724297681 Post for Screenshots on a 3080 RTX, I am not sure what they wrote lol, I believe they said that the game runs blurry for about 20 minutes before textures start loading properly or otherwise, but their computer is significantly high-end and still has this issue).

@mattruckus Ran into the same issues with DualSense controller on PC, Adaptive Triggers work fine but no vibrations. Vibrations work with DualShock4 and Xbox controllers. Have no issues with vibrations or haptic feedback in other games like Deathloop or Metro when using DualSense.

@akira1364 This is probably a DirectX12 bug, it exists in other games (Control, Monster Hunter World, and was fixed in Fortnite Dx12). Imagine if they (Ubisoft) don't know how to fix it..

Having the same issues on my RTX 3060m 6gb + AMD Integrated Graphics Card, 16gig DDR5 ram and AMD Ryzen 7 5800H CPU Laptop.
No HD Textures Installed.

I have no issues running the game above 60fps 1080p on Ultra, for the first 5 minutes the textures are sharp @ ~70-80 fps 99% (Lowest 50fps). Card temps stay at 50-70C. CPU temps in 80-90s Celsius.
After running the game for 5-10 minutes the textures and LOD on hands/guns/NPCs gets blurry.
It seems that the 3060m clock speed drops by about 200-300 (From 2000 MHz to 1700MHz in Alienware Command Center), keeping my CPU at 40% utilization (resource monitor).
The 3060m chip does not get hotter than 70C in the most extraneous situations on ultra.

It also seems that the game continues to render in the background as if you're 'actively playing' it when tabbed if un-paused;
Try alt-tabbing and looking at your computers resources when un-paused, mines remain unchanged.

Further, the VRAM in the menu seems off; Indicated 3.77g of vram used in the menu when actually is using about 4.2g on Ultra.

I've tried replicating this using every setting available (low, medium, high, raytracing off, resolution 720p). I tried deleting FarCry6 from MyGames in Documents.
Even on the lowest settings the textures substantially decrease in quality within 5-10 minutes of gameplay.

I was thinking that this happens in my situation as more of the level is rendered.
I was basing it off the camo on my rifle: As I run further down the road after turning loading first into the game, the camo goes from crispy to low quality.

Interestingly enough this issue exists in Control: Ultimate Edition when using DirectX12 as well, where I believe the pooling of textures is setting itself to lowest resolution within a few minutes of runtime and is currently fixed only with a mod.
This also was observed in Monster Hunter World and Fortnite DX12 (the trees would be rendered as if you were across the map, I believe it got fixed in Fortnite's case however).

Maybe a bug with DirectX12 implementation?

The fact that the issues exist on the 3080s indicates that something limits the game from loading textures when pushing hardware, or as hardware utilization ramps up. (Check @W724297681 Post for Screenshots on a 3080 RTX, I am not sure what they wrote lol, I believe they said that the game runs blurry for about 20 minutes before textures start loading properly or otherwise, but their computer is significantly high-end and still has this issue).

@mattruckus Ran into the same issues with DualSense controller on PC, Adaptive Triggers work fine but no vibrations. Vibrations work with DualShock4 and Xbox controllers. Have no issues with vibrations or haptic feedback in other games like Deathloop or Metro when using DualSense.