My Ryzen 7 3700x is causing a severe bottleneck with my 3060 at 1080p in Avowed

Seems like Avowed is a highly CPU bound gaming, especially in cities and populated areas. The 3060 is only being used 60-70% in these areas, sometimes a tad more (72-75%). This is causing my fps to hover around 44 whereas if it would not being held back by the 3700x I would get really close to the 60 fps mark.

DLSS, in cpu-bound scenarios doesn't help at all.

Back when I bought this CPU I never imagined a 3rd Gen Ryzen 7 CPU would perform this poorly by 2025 and I never dreamt it would hold back even an entry level 2021 GPU.

I'm thinking of doing a system upgrade, maybe to a Ryzen 5 5600x or better (not sure which CPU would be a good pair for the 3060 for now, later will get an RX 7800XT, further down the line).