It's because of ray tracing in combination with hairworks i.e. it's not down to just hair works or tessellation and it's not down to just ray tracing. At least according to people on reddit.....
Haven't seen my FPS drop anywhere near that though so far and I've got everything maxed with hairworks (dlss is on quality @3440x1440), this has been the lowest it's dropped so far...
I know it is a combination of both but it should not exist. There is no reason for why every polygon in the fur should go through Ray Tracing, this is probably what slows down the game a lot.
He did not used DLSS, that is the performance on 3090 native 3440x1440. Of course you get higher FPS with DLSS but without that bug you'll probably be over 60 FPS all the time.