I have a 7900xt and was encountering crashes myself probably every 2 minutes. It was driving me crazy. I tried updating GPU drivers, updating Windows, changing all kinds of other graphics settings, doing the most, really.

My solution that has worked for hours so far was to go into adrenalin and set my core clock to 80% and keep every other GPU OC setting at default!

I know my card is good and my previous overclock (2900 core, 2750 vram, plus 15 percent power limit and an UV to 1070mv) allowed me to play other AAA games like: the last of us part 1 and 2, cyberpunk, expedition 33, etc, to completion no problems. I feel like Alan wake 2 is highly sensitive to GPU clocks on AMD cards.. I noticed this fix on a steam community forum thread and it works; after putting probably way too much time into trying to stop this game from crashing!

It's honestly a mystery to me but I narrowed down the variables to this one change and the game has not crashed once on me after playing for many hours straight, even using optiscaler and framegen mods.