i generally don't recommend using the "enable for windowed and full screen mode" option for gsync. it's not ideal...
for reference, here's this from the nvidia control panel:
- fullscreen g-sync applies to fullscreen applications and applications optimized to render without the use of the desktop compositor"
- windowed gsync extends compatibility to applications that render with the desktop compositor
- as a prerequisite for windowed g-sync, an application needs to be profiled by nvidia or manually through manage 3d settings.

there is also what was explained by tom petersen, back when he was with nvidia, in this video about the windowed gsync option:
https://www.youtube.com/watch?v=2Fi1QHhdqV4&t=2872s
so then... the "enable for windowed and full screen mode" option for gsync in the nvidia control panel enables gsync for applications that render or present frames with the desktop compositor (dwm / desktop window manager).
that would be apps running with the bitblt model with gdi (typically shown as "composed copy with gpu gdi" for presentation) and/or apps running with a "composed flip" presentation
and the "enable for windowed and full screen mode" option for gsync in the nvidia control panel does its thing by basically forcing the OS / dmw to render at the rate of the focused windowed app and then gets the display with gsync to sync to the dwm's render rate...
also apparently it's supposed to work only with apps that are profiled by nvidia or manually through managed 3d settings.
however, i generally don't recommend that "enable for windowed and full screen mode" option for gsync because it may not sync properly or at all in some cases... and it may also cause gsync to sync with other stuff you may not want it syncing with... plus it's not needed for gsync with windowed/borderless games that are bypassing dwm composition (this would be when the game is using directflip/independent flip for presentation).
if the windowed/borderless game is using an independent flip presentation (thus bypassing the desktop compositor for presentation), then basically you just need the "enable for full screen mode" gsync option from the nvidia cp.
oh and while the "enable for windowed and full screen mode" option for gsync may get rid of vsync latency, it doesn't get rid of latency from dwm composition...
you can get higher performance and lower latency if your game is using an independent flip presentation ("hardware: independent flip" or "hardware composed: independent flip").
so i suggest using the "enable for full screen mode" option for gsync and ensure that your game is using an independent flip presentation. you could use intel's presentmon, special k, or rtss to check the presentation model that the game is using.
btw the low latency mode from the nvidia cp did not work with d3d12 games last i checked.
and the ultra low latency mode used to not work with d3d12, but nvidia got the ultra low latency mode working with driver 551.23
https://www.nvidia.com/en-us/geforce/ne ... dy-driver/
https://www.nvidia.com/en-us/geforce/ne ... dy-driver/
https://us.download.nvidia.com/Windows/ ... -notes.pdf
besides nvidia only mentioning ultra low latency mode now working with DirectX 12 titles in their driver 551.23 notes, i also tested both low latency mode and ultra low latency mode. only ultra low latency mode worked in my testing with d3d12 games using driver 551.23 (and newer). the regular low latency mode still did not work with driver 551.23 (and newer) and ultra low latency mode didn't work with drivers older than 551.23 as expected.