As of version 1.16.200.53 texture lod has decreased drastically at approximately 6 blocks from the player textures will resolve with low to no detail and appear very blurry. 

This was not an issue in the previous RTX Beta build. 

• Issue appears on all texture packs tested and was also re produced by a friend of mine. 
• Issue appears with DLSS on or off
• Issue appears with RTX on or off

Screenshots attached show the extreme degree of texture lod fall off however please note this reduction also appears center to the payers view and is not restricted to the extreme edges of the fov. Overall this drastically reduced the visual quality of the game. 

Hope this was not a feature to reduce vram usage as it has a massive impact on the games visuals if so please consider an option allow for lod scalability .