https://wccftech.com/heres-how-to-improve-cyberpunk-2077-texture-sharpness-when-using-nvidia-dlss/

Cyberpunk 2077 may be relatively ugly and bad-performing on PlayStation 4 and Xbox One, but the PC version is a whole other story on both counts. Furthermore, if you've got a GeForce RTX graphics card (AMD's RX 6000 Series should get ray tracing support in the future), you can enable the following four ray traced effects that greatly improve the game's visuals.

Ray-Traced Diffuse Illumination - This captures sky radiance as well as emissive lighting from various surfaces, which is difficult to achieve with traditional rendering techniques. When enabled, billboards and other illuminated surfaces and objects will brighten their surroundings with naturally colored lighting, and the sun and moon will realistically illuminate Night City.