Update after a few hours with the wheel:
I downloaded Logitech Hub and laucnhed the game. This time the FBB is really there. I can feel everything especially how I need to fight the car to get it to go where I want. I'm in N3 stage now using a KTM X BOW R, it feels like a go kart on steroids haha
I switched over to flappy paddle gears but soon switched back; it was too difficult to find the line AND select gears at the same time. Maybe with practice I'll get there but for now automatic gear box is for me... I enjoy the game a lot more.
I set the Ai to 85% and aggression to 50% which is the sweet spot between challenging but not impossible.
I found this guide on Reddit and got the mods, the game looks ridiculously realistic: