My game freezes like that with every Net 7.0 version, with or without mods, it fills up all of my 32GB RAM and starts to freeze periodically (2-3 seconds sometimes). It doesn't matter if I'm in already explored area or if I'm moving around, new game or older save it's all the same. Lowering some settings didn't give any effect other than taking it a bit longer to fill up my RAM, but once it does it just stays at 32/32 used for as long as I play. It takes about 15-20 seconds to free used memory after I exit to main menu.
My PC: i7 10700k, 32GB 3600MHz RAM, RTX 3080, Game is installed on m.2
I reverted back to 1.18.7 and game works like a charm