The Fix
I was able to fix this cutscene by deleteing the shader cache and rebuilding them.
This can be done by following the following steps:
1) Go to the "Documents/ DeadSpace(2023)/ cache" folder
2) Delete everything in the cache folder
3) Boot the game and wait. Do not touch any keys while the game builds new shaders.
And that's it. For whatever reason the game builds shaders as soon as you launch it for the first time and doesn't rebuild them after changing your settings, causing all kinds of bugs and stutters. Note that you will need to redo this process if you adjust your settings at any point.
Hopefully this helped fix your cutscenes like it did mine.
Source: https://steamcommunity.com/sharedfiles/filedetails/?id=2929199099
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