Baldur's Gate 3 on PS5 is effectively the PC version at ultra settings
eurogamer.net
Happily, PlayStation 5 manages to deliver a creditable rendition of the game, but the now legendary Act Three continues to humble CPU performance - perhaps more than we anticipated going in.
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You probably haven't gotten to Act 3 yet, the game is extremely CPU bound. I have a Ryzen 9 7950X and while Act 1 and 2 were basically locked to 144fps the entire time, in Act 3 I have seen dips down to the 40s.
Try turning off "Dynamic Crowds" in settings. I didn't notice much difference in how the crowds behaved, but it supposedly simplifies their AI and pathfinding to cut down on CPU use. It helped me a lot in the city.
Ah my CPU is pretty modern compared to the 1060, and no I'm not even into act 2 yet