Hardware Raytracing no longer works with RTX GPU's

Summary

I have nanite turned on, im on directx12, im on lumen global illumination set to epic and reflections set to epic as well, for some odd reason instead of Hardware Raytracing activating with my new RTX 5060Ti 16 GB Graphics card the reflections for puddles, mirrors are very blurry and low textured and my character reflection looks low poly modeled and its texture is unsynced static like. I have done the DDU method and checked the HAGS settings but nothing is working

Please select what you are reporting on:

Creative

What Type of Bug are you experiencing?

Assets

Steps to Reproduce

if any of you at Epic Games has an RTX GPU go to settings, turn on nanite, switch to directx 12, set to lumen epic and reflections to epic, place down the reflective cube in creative and see the blurry reflections

Expected Result

you should see the blurry reflection issue im having

Observed Result

N/A

Platform(s)

RTX 5060 Ti GPU 16GB, Windows 11 Corei7 7700k

Island Code

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Video

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Additional Notes

I post this on reddit and someone said It looks like the engine is defaulting to a software-based fallback for Lumen instead of initializing the Hardware Ray Tracing (HWRT) pipeline correctly. This is a classic silent failure I’ve seen when there’s a conflict between the DX12 API hook and the user’s local driver state or HAGS settings. ​For the user, I’d suggest verifying HAGS and performing a clean DDU driver install to clear any cached API states. But looking at the logs, it’s worth investigating if there’s an unhandled handshake issue during the initialization phase where the engine fails to validate HWRT availability if an API state mismatch occurs. It definitely looks like a fallback trigger condition needs tuning in the next build. I have done the verify the HAGS and performed a clean DDU driver install to clear any cached API states and im still getting the same issue, im not sure whats going on, I see that the nvidia app is saying Hardware Raytracing is now on but when I launch fortnite from the epic games launcher or from the nvidia app i still get the low poly and blobby reflections, i do have HAGS Turned on and still nothing. Is this a fortnite problem or a hardware problem? im confused as to why im still having this issue.