Editor crashes when using DX12 and/or Ray Tracing?

I think I am getting the same or a similar issue on 4.22 or newer where the display driver hangs at startup. Actually for me this seems to be a general DXR issue (more on that below). I am running a RTX 2080ti.

I tried the usual: updating all the drivers and Windows, downgrading the GPU drivers, then went further and tried extending the TDR time, flashed the bios made a sacrifice to the elder gods etc.

It didn’t happen for me before (a month or two back), but it is hard to pinpoint what exactly changed during this time frame.

For me EVERY application that uses DXR (except for Quake II RTX demo curiously) in addition to UE Battlefield V, 3Dmark port royale, the Reflections demo a compiled hello world DXR sample provided by microsoft and so on crash at startup.

I am not sure where to continue debugging this, I wrote to Nvidia support, but still waiting for a reply (that is hopefully different from reinstall all the drivers for a n-th time)

Event viewer offered these errors:
\Device\Video3
Graphics SM Warp Exception on (GPC 3, TPC 0, SM 0): Illegal Instruction Encoding
0000000002003000000000000D00AAC0000000000000000000000000000000000000000000000000

Device\Video3
Graphics Exception: ESR 0x51c730=0x9 0x51c734=0x0 0x51c728=0x7c12b72 0x51c72c=0x174
0000000002003000000000000D00AAC0000000000000000000000000000000000000000000000000

But my Google Fu didn’t get me anywhere with this.