My friend has an RTX 3060, and just brought an MSI Optix G32CQ4 31.5" 165hz 1440p monitor.
On windows display settings AND NVIDIA control panel, the max resolution is 1080p and is set to 165hz. His graphics drivers are updated to GeForce Game Ready Driver, version 546.17.
He is using Display Port cable. If this is a cable/port problem then in a couple days I’m going to test some other cables, and also test on another device.
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Is this a laptop or desktop? Is your friend sure they plugged it into the gpu and not the onboard graphics?