Incorrect Texture Dimension behaviour on shadows on Intel Iris Xe under Vulkan

Validation

• I have checked the Issues page to see if my problem has already been reported
• I have confirmed that this bug does not occur in the original game running on original Xbox 360 hardware

If you have DLC installed, please specify which ones you have.

• Apotos & Shamar Adventure Pack
• Chun-nan Adventure Pack
• Empire City & Adabat Adventure Pack
• Holoska Adventure Pack
• Mazuri Adventure Pack
• Spagonia Adventure Pack

If you have mods enabled, please specify which ones you have.

No response

If you have codes enabled, please specify which ones you have.

No response

Describe the Bug

Shadows look really weird after the update 1.0.3. I've turned off all the mods and codes, checked the files, checked the game in original hardware and emulation.

Steps to Reproduce

1. Just open the game with an Intel Integrated GPU
2. Look at the shadows, whatever you try to fix it by changing the settings, it just stays like that.

Expected Behavior

Normal Shadows, each setting to it's specific resolution, for me, it's just stuck to that resolution.

Footage

System Specifications

CPU: Intel i5-1135g7
GPU: Intel Iris Xe G7 80EUs
GPU Driver: Intel Graphics Driver 32.0.101.6651 (Latest)
OS: Windows 10 Home
Version: 1.0.3

Additional Context

This only happened when i updated from 1.0.2 to 1.0.3. I've checked all my drivers, updates and everything is fine. When i go to 1.0.3 it does just that. My current preset is:
1280x720p
Original Shadows
No Anti-Aliasing

No source file or test is identified in the report. Start by reproducing the shadow behavior on Intel Iris Xe under Vulkan and compare versions 1.0.2 and 1.0.3; done means shadow settings produce their selected resolutions on the reported hardware.