I have been having this problem where textures no matter what graphic setting i have it on they seem to merge into giant blobs. The only way i have found to temporarily resolve this is to delete all of the game files and reinstall.
i think there is a setting that auto adjusts the graphics quality no matter what you have it set as. I don’t remember if it’s part of the target fps option or not. Could you screenshot your current graphics settings?
I am getting pretty much a solid 60 in most areas but every now and again i get a huge drop to 36 usually when i go into a new area through a portal which is to be expected.