There can be many reasons for this error. Microsoft has an article on the error and it does not explain it with a hardware issue. My GPU is watercooled and never runs above 70 degrees celcius and I had this error along with many many others.
Apparantly the problem occurs when the application makes an invalid call to the GPU driver.
Microsoft advice is pretty much the worst option you can get.
If the GPU is fine, the top reasons could be not enough power from the PSU or even ram errors:
https://www.reddit.com/r/starcitizen/comments/13qe9cr/dxgi_error_device_removed_amd_5700_xt_gpu_i7/An invalid call to the GPU mostly happens when the 'call' is corrupted by a hardware error. Microsoft advice generally assumes you are running an office PC or laptop and not putting it through any heavy load.
If you don't want to actually even try to run stress tests to find out, then thats fine, its your PC. I tried giving up on giving out PC advice a long time ago and should continue to refrain because most people won't listen.
Can you provide a stress test I can try? I've been having this issue and it's been perplexing me. I've got a 7900XTX and a 7800x3d, with a 1000w power supply and 32gigs of RAM; built this PC in May, and this is the only game I've run that's been giving me any problems. It's a pretty high-end rig so I've been surprised to be experiencing issues.
Curiously, this particular crash only happens for me when I run in DX11 - it doesn't happen if I run in Vulkan. However, in Vulkan, I experience other issues - strange graphical glitches (I'm getting those black squares appearing during dialogues that people have been reporting), and I've been getting microstutters during dialogues in Act 2 (Act 1 was fine). If I run in DX11 I get the device error hung in like 30 seconds flat. Weirdly, it didn't happen during early access at all. I was able to play for a few hours with no issues. Once release day came, though, suddenly I started getting this error almost immediately (as in, during character creation). I've been scratching my head on this. I'm not so proud as to assume that it can't be a hardware issue, but I just find it unlikely - I don't have this issue in any other title, the parts are new, and the issue is only occurring when running in DX 11 as opposed to Vulkan. Driver updates/reinstalls did nothing to remedy. Ultimately, I just want to be able to play the game and have it run as smooth as butter... I feel like with specs like mine, that should be doable.