Its failing to create the texture arrays used for the terrain.
[2018-04-15 00:42:09.931] [ERROR] Texture array ‘alphablockatlas_nm_array’: failed to upload level 0 of slice 49: assets/textures\alphablockatlas\nm_49.dds
It should be capable of it, its a DX11.1 part, supports up to 2k 3d textures and has 4GB shared ram allocated.
It sounds like you tried all the obvious things like the driver updates. In game the texture size option is the one that may help as it frees up more space.