As has been said, generally with GSync you want VSync on in NVCP, off in game and where you can cap the frame rate to 3fps below max frame rate. This article explains it in far more depth,
https://blurbusters.com/gsync/gsync101-input-lag-tests-and-settings/
Thank you
To quote from the linked article:
"Upon its release, G-SYNC’s ability to fall back on fixed refresh rate V-SYNC behavior when exceeding the maximum refresh rate of the display was built-in and non-optional. A 2015 driver update later exposed the option.
This update led to recurring confusion, creating a misconception that G-SYNC and V-SYNC are entirely separate options. However, with G-SYNC enabled, the
“Vertical sync” option in the control panel no longer acts as V-SYNC, and actually dictates whether, one, the G-SYNC module compensates for frametime variances output by the system (which prevents tearing at all times. G-SYNC + V-SYNC
“Off” disables this behavior; see
G-SYNC 101: Range), and two, whether G-SYNC falls back on fixed refresh rate V-SYNC behavior; if V-SYNC is “
On,” G-SYNC will revert to V-SYNC behavior above its range, if V-SYNC is
“Off,” G-SYNC will disable above its range, and tearing will begin display wide.
Within its range, G-SYNC is the only syncing method active, no matter the V-SYNC
“On” or
“Off” setting."
So V-sync on in the NV Control Panel is not really V-sync on, except if your framrate exceeds the monitor's max Hz. So with a frame limiter under the maximum it simply helps with frame pacing.
This explains why they advocate V-sync being "on" even when it typically would give significant latency disadvantages: it isn't really "on", just helping with the render queue.
I will give this a go and see how it turns out.