Nvidia Smooth Motion not working with Nioh 1 all of a sudden

Hi all. I have been enjoying another play through with Nioh - Complete Edition (steam), and had been using Smooth Motion via Nvidia app to have a perfect 120fps. There had been no issues at all up till recently, when I presume a new driver update has borked it. Now it shows I'm getting 120fps, but it's kinda of blurry like double vision, as if the interpolated frames are being overlaid.

I've tried all sorts of things to sort it - forcing vsync on and off, g-sync, capping frame etc but nothing works. Mildly frustrating as it was absolutely perfect before with no discernable input lag.

Has anyone else come across this recently and managed to find a solution? Thanks!