Question What is the best GPU for an Xeon 1270v3 without a bottleneck?

Haswell platform, you might want to stick to what you currently have or an RTX2060 but at the resolution you've mentioned above, you're losing out on performance. You've forgotten to mention the make, model and age of your PSU.
2060 is too much for 1050p, that's why I need a GPU without any bottlenecks. PSU 700W
 
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About the highest i would go is around an RX 6600 (XT) or RTX 3060. You'll be cpu bottlenecked, but you should be able to get most of the performance out of those GPU's.

A short list would include:
GTX 1070
GTX 1080
GTX 1080 TI
RTX 2070
RTX 2080
RTX 3060
RTX 3060 TI
RX 5700
RX 5700 XT
RX 6600
RX 6600 XT
RX 7600
RX Vega 56
RX Vega 64
 
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The Xeon 1270v3 is on par with the I7 4770 if anyone needs a reference of where it sits.


A RTX 3060ti are a decent buying price right now as well.

If you want to go for cheap a GTX 1080ti 11GB of memory but older or even cheaper a GTX 1660ti but your back to 6GB GPU memory.

Everyone's personal interpretation of bottle neck is different.

I run older Xeon CPU's with a Nvidia card equivalent to the GTX 1080ti. Everything just works and I never have these weird gaming glitches or as you say bottleneck slow down.
 
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Nothing wrong with having a GPU idle a bit waiting on the CPU. It will just run lower power and cooler. Increase graphics settings to the point the GPU can't keep up, and bottlenecks are as gone as they can be.

CPU sets the 1% lows and the maximum possible FPS, generally. GPU just determines what resolution and settings you can run.

Some visual settings rely on CPU performance though.