Tinfoil hat on. I get the feeling nVidia has released DLSS 3 a little earlier than it should have. They've used it to show the insane uplift in FPS for the new 4 series but obviously didn't highlight any of the issues it currently faces.
Meanwhile, the sites/youtubers who've done in-depth analysis on it have pulled it apart a little, highlighting the flaws. This should have a knock-on effect of helping to sell 3 series cards.
I can then see DLSS 3 getting a major update shortly after that stock has cleared and all of the focus is on the 4 series. There's no chance nVidia leaves it in its current state as it's going to be crap on the lower end 4 series.
Tinfoil hat indeed
Will definitely be updates to try and iron out the issues though, suspect in several months/year time, we'll have FG/DLSS 3 being praised as the next best thing as happened with DLSS 1 to DLSS 2, especially since intel will be getting their version out very soon apparently.