My spec:
Ryzen 2600X
16gb 3200mHz
Vega64
Acer XV272UP
Win10 20H2
Therefore, it might be different for Nvidia card users.

TL; DR

Best settings shall be:
1. Monitor HDR on
2. Win10 HDR on (right click on desktop>graphics settings>use HDR)
3. In game HDR on and borderless screen
Then there you go; you can enjoy a true to life graphic quality and free to alt tab.


And don’t scream yet. I also try to play every game in true full screen, to eliminate possible tearing or performance impact.

But RE7 in HDR doesn’t work, cause the options menu is somehow in SDR when playing in full screen. And each time, you go to game options or alt tab. You will experience black screen for 5s. And this is quite annoying. Sometimes, you alt tab back, the HDR is turned off. And multiple black screen will sometimes also cause your game to crash.

In earlier Win10 version, full screen is required if you want HDR to come in effect. But now, it isn’t. And when RE7 was developed, HDR compatibility was still quite poor.
And you can apply the same settings in RE2 or RE3 remake, but in full screen.


I hope this would still be useful in 2021. I purchased the game long before. But did not bother to confront this most depressing and scariest one of the whole franchise so far.

---

RE7 has got a mini update in Apr. And they definitely changed something relating to graphics and HDR.

To enjoy seamless gaming experience and alt-tabing. the bes settings are still:
1. Monitor HDR on
2. Win10 HDR on (right click on desktop>graphics settings>use HDR)
3. In game HDR on and borderless screen

However, after this update, when you try to change the ingame brightness etc. with HDR on, the game tells you it can only be done in full screen.

I spent some time, running the game in full screen, borderless, Win10 HDR On and Off.

Here is my new work around if you need to change any ingame display settings

1. Monitor HDR on
2. Win10 HDR on (right click on desktop>graphics settings>use HDR)
3. In game HDR on and run in full screen at first
4. Adjust brightness etc to your desire.
5. Close the game and restart the game then change it to borderless window.

You might wonder, whether the game is actually working in HDR.

As long as your win10 is not too old, the game will work in borderless window with HDR on.
In the past, when HDR support was still very poor, it is true that games were forced to be played in full screen. But not any more.

And you can always access your monitor's OSD to check whether your monitor is displaying HDR or SDR content.

cheers