UPDATE: 3/8/2021 Cororon has been affected now and is determined to figure this out, yaaay! Please go to her thread on Nvidia and support her efforts to have Nvidia take a look at what's going on.https://www.nvidia.com/en-us/geforce/forums/game-ready-drivers/13/438312/sims-3-colour-banding-and-artefacts-with-nvidia-dr/
UPDATE: 9/2/2020: Naus has narrowed down the issue (see page 17 of this thread) and Infragreen has some possible fixes and has started a thread at Nvidia to get some attention. Please post there if you're having this issues. Let's be loud and get this solved!!!https://www.nvidia.com/en-us/geforce/forums/geforce-graphics-cards/5/395894/horrible-color-banding-texture-handling-and-dither/
UPDATE 6/19/20: I'm updating this thread to reflect the REAL issues in the game that was caused by the early December Windows update. Some of the issues I showed pictures of were already in the game and always an issue. I just didn't noticed until I went looking for them.
The real issues are worse color banding and the pixilation of sims' skins and faces. The pixilation issue especially affects sims with darker skin color or who are out at night time. Installing Reshade and editing the color banding option does help with this issue and Archivist provided instructions for that on this thread.
The other issue is horses used to look like horses and now don't completely render. The cheap fridge issue was evidently always in the game and even happens on Linux systems.
This poll is not accurate as some who said they were not affected have now been affected.
A recent Windows update (yes, it has been narrowed down to that) has caused all kinds of crazy pixilation issues in a lot of our games. Have you been affected? I'll put pictures of the issues in the second post.
ETA: One of the reasons for this post is I recently saw someone who was complaining about their graphics on FB get jumped on by a lot of players saying how awesome Sims 3 graphics are. I think they thought it was an old 'sims 3 graphics are horrible' rant but it wasn't. Just want everyone to be aware that this is happening so we can be supportive to those who are affected and let them know what's going on. Yes, sims 3 graphics are the best! But not when they're borked.
ETA2: For those who don't hang out in the techie section, these are the things I've tried: First thing was Nvidia, had long chats with them 2 nights in a row. No help. Finally told me to go back to the developer. Tried reporting to Windows. No comment. Tried rolling back graphics driver. No help. Tried a total reset thinking Windows would be restored to the original condition when I purchased the computer. That doesn't work anymore. Windows now restores the updates along with your system restore. No way I can find around that. Puzzlezaddict did some testing here if you want to look at that thread in the techie section. Posted over at NRaas. The techies over there think it is definitely a Windows update, and also that it is affecting more recent games than Sims 3, even some of their Xbox games. Because of this they think Windows will eventually fix it. That's where we are now.