I ended up having to download a special application to fully clear out the latest version of the NVIDIA Game Ready Driver. Unbelievably you can’t just roll back to an older version easily which is ridiculous. You have to get some third party application to completely wipe the latest driver than re-install 577. If you are still seeing the issue my guess is that the latest build might not have been wiped fully or correctly but I’m not 100% sure about that. What I do know is I did two tests just to fully confirm it was the latest NVIDIA driver and both times worked for me. The latest driver had pixelated ugliness in the transitioning area of DOF and 577 did not. It’s also worth mentioning that you have to make sure 577 is the version you are on. Sorry I’m well past this issue and no longer have the links for the third party app I used or the link to NVIDIA for the specific driver but just google and you should be able to find both.
My sympathies to you on this sir as I wasted and entire day just on this problem alone.