Your description sounds like .ini file override issues, and I don't know much about which file gets searched first.I'm also having some trouble with VSync there: https://answers.unrealengine.com/qu...ble-vsync-via-config-file-in-packaged-ga.html
If I enable it via "r.vsync 1" in the console, it works though, and the tearing goes away. If I don't do that, even forcing vsync in my drivers doesn't work somehow.
But tearing even with fixed 60FPS is weird. Do you maybe have another PC to test this on?
Tearing with 60FPS in my case was because apparently, you can't do vsync with borderless windowed fullscreen. Only the "true" fullscreen mode uses actual vsync and allows things like Nvidia Inspector to force it.