It's a low res bug/fail safe, I don't think it is in regards with running out of actual vram in the true sense afaik(that's why the fps don't crash out) but the engine is calculating texture use and doesn't flush it-and then reverts to low res textures when it exceeds your cards vram capacity(so it is and it isn't because of vram


).
As it's happening to others using 3Gb gpu's despite only using ~1.8Gb during gameplay, it's pointing to a bug/engine fail safe.
No doubt it will be picked up mainstream and discussed, so maybe it will be highleted and fixed sooner rather than later.
How to actually try and bypass the problem until it's fixed, try this:
You can try editing the XEngine.ini(Bioshock Infinite/XGame/Config and make a backup copy of your DefaultEngine.ini file), and increase the poolsize limit, it should enable a longer timeout before the game reverts back to low textures.
Settings to change are:
PoolSize=6000 (can be put higher but can revert textures to low quicker)
StopIncreasingLimit=128
UseTextureFileCache=False
TexturePoolSizeReductionMB=1
LowPCTexturePoolSizeMB=256
Notes on using the XEngine.ini workarounds:
You need to set your ingame settings first, exit the game then apply XEngine.ini settings-or XEngine.ini will revert to stock.
Add the "-ReadTexturePoolFromIni" parameter to launch Bioshock or it might not apply.
It should increase the textures limit but they still can revert back, so you might want to play a level, quit and restart the game.
If it still does it, then add this:
[MemoryPools]
FLightPrimitiveInteractionInitialBlockSize=1024
FModShadowPrimitiveInteractionInitialBlockSize=1024
Note that I haven't turned into johnny guru overnight, but taking the juicy bits from over@Tridef.
Some input back from the op on whether it fixes the issue or not would be smashing.
