I suddenly realized games started running at 60 FPS despite the fact that I have a 165 Hz monitor and that nVidia control center settings are just fine. It just started out of blue and previously there was no such problem. Maybe some Windows update triggered it but I just can't remember what could have done it. Anyways. I started googling the problem and tweaking with settings and I somewhere read that disabling Game DVR and Game Bar via windows settings can fix the issue. I did it and boom the problem got fixed. I am not sharing how to disable them as there is plenty of information out there but if you have trouble, write here and I and others can help.