I have similar config: 7700k + 2060 RTX 16Gb RAM
And similar problem. I updated my windows and nvidia drivers as well as using UE 4.25.3 but it still persist.
I noticed UE4 would render some scenes in ray tracing just fine like ArchViz interior, but others even just enabling it in project settings, keeping everything ray-tracing disabled in postprocessing it would still crash it “out of memory” even though it was relatively simple 8km*8km landscape running at over 170fps prior to enabling ray tracing.
I’m curious if it’s indeed a bug or if it just needs lots of memory…