The player.log you provided shows a lot of “Could not allocate memory: System out of memory!” errors and plenty of DirectX Rendering texture problems. These are usually (almost always) related to performance issues (i.e. settings) or graphic driver problems.
As you have reinstalled your driver and your OS is patched, I would assume that this is purely a performance issue.
Your 1650 is about 30% slower than a 1060 that I use and I have found that although I can run the game at high fps (on lower quality) or at acceptable fps on High quality, the game tends to be unstable and causes freezes, stuttering or occassional crashes… I run the game at very low settings at 1080p for what I consider best stability/performance and I am willing to wait for game optimisation for the eye candy.
Based on your hardware I would expect that you would have to run the game (even at your reduced resolution) at very low (maybe a few on low) settings with an fps limit of around 40fps (fps limits are important to prevent LE from maxing out your gpu all the time).
Your dxdiag diagnostic section (end of the file) is showing all the Last Epoch & Launcher errors - thats expected from the logs. There is also an error related to Last Epoch with fmodstudio.dll - which is related to in-game sound… I would probably chalk this up to a side effect of the performance issues - especially as you have found that lowering them has helped…
Side note: Dont run anything else while testing LE… Your CPU should be fine but your GPU is not going to be able to handle anything that needs it while playing LE. So no video capture/streaming etc.