Version is the latest (1.0.3) and I only installed this mod. I saw that when it is at 40 fps the utilization of my system also goes down accordingly. It also happens when dojacat is not present on the map, so I don't know if its some incompatibility or something.Not entirely sure. Depending on whether you actually use the DDS texture feature (and depending on how many of those get loaded) I can see a small performance hit because obviously they are held in memory. Aside from that though, nothing more is done with them really, so I don't know exactly what would cause FPS to fluctuate as you describe.
However, next time I'm working on the mod, I'll put more focus on optimization passes, since I believe some operations (like checking for missed quests, grabbing actor info, etc) doesn't necessarily need to be done every step of the game. Would be great to see if it gets better (or stays the same) then.
Just out of curiosity - which version of the game are you on? And are you using any other mod besides this one? For example: I've noticed much increased load times and a few hiccups after loading a save while having the "Unity Explorer" installed. I guess it's not really built for playing smoothly, but rather as sort of a "debugging tool" to be used on demand.
I tried removing the textures and leaving only the dll and it still happened so it seems to not be related to the textures.
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