The problem is that FSR isn't the best upscaling method even within AMD's pantheon of features, and it does mean a loss of image fidelity. If you can cope with occasional drops down to 25 fps or so, then I would recommend Ultra Quality over the plain Quality setting—it makes the game look so much cleaner on the Steam Deck's low res screen.
Because it's not some twitch shooter, I can cope with the lower frame rate over the crawlies and jaggies the AMD upscaled version of Baldur's Gate 3 introduces on the Steam Deck. I'm hugely impressed with Larian's controller implementation and will happily play the whole game like that, basically running it like a third-person Mass Effect-style RPG, so the controls aren't my concern, either.
I can happily run the game at a pretty solid 30 fps with the settings I outline above, and with FSR on that means I can squeeze around 1 hour and 45 minutes of Baldur's Gate 3 game time out of the Deck, but it's far from an ideal experience.
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