LS is not supposed to work with Exclusive fullscreen (FSE), and only sometimes may work on certain titles with DXGI
Borderless fullscreen should be as performant, if you are on win11 with Fullscreen optimisation enabled, which pseudo forces FSE
Sounds more like Vega 3 is just not fast enough. LS has a gpu compute overhead, you're probably at the limits of the iGpu. A rivatuner/special k graph of your gpu utilisation will paint a clearer picture
It's very unlikely simply using borderless fullscreen will drop your fps from 30 -> 23. At most, you may loose a single frame on windows 10 without FSO (fullscreen optimisation)