On a 3500H with a GTX 1650, GTA V feels best at 1080p if you cap to 60, use FXAA, keep MSAA off, set textures high and shadows normal, and pull back extended distance scaling a bit. Dual channel 2666 RAM should smooth frame pacing too. Make sure the game is using the 1650 and not the Vega iGPU in the Nvidia panel, or Los Santos turns into rush hour. Are you locking frames with in-game V-Sync or something like RTSS?

Thanks buddy, switched to using FXAA. Actually the games runs solid 60-70 fps on max settings without screen recording, but with it on it sometimes gets a bit choppy. I do keep V-sync turned off.

Nice on the FXAA switch. Recording adds extra load, so try NVENC in OBS or ShadowPlay and set the recorder to 60 fps with a 60 fps game cap to clean up frame pacing. If you want V-Sync off, use RTSS or the NVIDIA limiter to lock 60 and it should feel smoother. For capture sessions, drop shadows and grass one notch to keep some headroom.