Nvidia DSR Causes Horizontal Lines Pixelization Mesh with HDTV 1080p

[Ransome]

Hello.
I have been using Nvidia DSR for a long while now (ever since it was released).
Recently I have noticed a strange, interesting, occurrence:
Without DSR, native 1080p, night sky in MGSV TPP appear rather clear - with a mild diamond shape grid, barely noticeable grid-like pattern:

When applying 1440p DSR (×1.78 DSR -> 2560 × 1440) - Thick horizontal lines appear -similar to a pixelization effect. It's hard to see it in this photo but it is very distracting:

They are very noticeable, from close and far.
I believe it has something to do with the nature of Nvidia's Dynamic Super Resolution, aspect ratio and downscaling.

Strangely and remarkably - increasing the DSR to 4K 2160p (x4 DSR -> 3840 x 2160) - results in NO horizontal lines and a fine grid instead - hardly, if not at all, noticeable. Very similar to 1080p's sky grid/mesh.

*All pictures taken with my phone's camera.
**Problem is 4K 2160p DSR is too costly even with AO off and my GTX 980 SLI build. It seems fine at first, but the engine doesn't handle debris/dust effect well without dropping the fps to 30-40 randomly.
***Tried Driver uninstall (also went back to 365.19). Tweaking NVCP. Tried changing TV settings. No dice.
***My TV is a Samsung UA55D6400 55" 1080 LED HDMI TV. It's connected through Pioneer VSX-823-K AV Receiver.

 

[Wayfall]

I have a GTX 970 and I have no problem with Dynamic Super Resolution. I run it at x4 (x4 1080p = 4K) on Dishonored as the FXAA is so bad in that game. Also turn any AA off if your using DSR as it is not required due to the high resolution.

 

[Ransome]

I have a GTX 970 and I have no problem with Dynamic Super Resolution. I run it at x4 (x4 1080p = 4K) on Dishonored as the FXAA is so bad in that game. Also turn any AA off if your using DSR as it is not required due to the high resolution.

Like I said in above, 4K 2160p doesn't have that visual issue at all, however it is too unstable and costly performance-wise.
Also bear in mind that MGSVTPP is a much more demanding game than Dishonored.

Interesting note -strange enough - I tried all the DSR resolutions between 1080p and 2160p - and all of them shows those distinguishable thick horizontal lines - the higher the resolution the worse it looks!
However 4K and the native 1080p - does not suffer from this issue at all!
The lines simply disappear once hitting the 3840 x 2160 resolution (see image 1 and image 3 - then compare with image 2).

UPDATE: This also doesn't seem to be a DSR specific issue - but a down-scaling limitation probably:
I tried setting a Custom Resolution 2560 x 1440 - and the result was the same artifacts as seen in image 2.