The DLSS integration seems a bit busted, with the option you're selecting in the graphics settings changing after you exit out of the menu. Sometimes when I select Quality, it changes to Balanced. Every time I select DLAA, it changes to Ultra Performance.
I get the exact same thing. I've only tested in one very limited indoor section and then a brief outdoor run but I also get horrendous specular aliasing on the blood textures with DLSS at any setting - even DLAA. It's so bad I literally can't play with it on. I'd rather use FSR and have the rest of the image a bit more unstable I think.
This may be a fairly unique situation that I've just been unlucky enough to hit with my first test but in this state DLSS is unusable for me.
Frame gen on the other hand seems to work well. Native res + frame gen gave me reasonable frame rates in the outdoor area (around 90-100fps) although I suspect this will get much worse in the games heavier areas. As it stands though, due to the above mentioned specular issue this would probably be my preferred way to play. I hope this gets resolved before the final release.