
In-game videos will not play properly on Steam's versions of Proton, and will instead show a color test screen. This issue can be worked around by using GE-Proton.
Gameplay performs well and as expected.

Steam Deck runs game naturally at 60FPS with no issues using the default out of box configuration, however the textures are on the blurry side so I'd recommend increasing their quality.
Disabled Super Resolution, turned down resolution to 960x600 and enabled the Steam Deck's FSR. This performed and looked better to me and ran smooth at 60fps

works out of box no tinkering needed i was getting a straight 60FPS no dips
Changed to 40 fps with Steam overlay
Worked out of the box for me. I had one issue with a save file syncing to the cloud, but a reattempt had it synced just fine. Played from beginning to end on easy with no issues. I did not use any protontricks or GE, just played fine via the stock launcher in game mode. I did change FPS to 40 FPS via the Steam overlay to help battery life and got about 2 hours of battery life from full ot 10% charge even at about 75% brightness.
The current proton version automatically chosen by steam is 95% there - only downside is some videos do not play. Examples are the "RE Engine" splash screen, "Banned Footage" splash screen, and testing area video (among others). With GE7-24, it fixes this issue and the game seems to be 100%. I've put in about 30 hours of playing/testing on this, multiple playthroughs.
I had left a review calling RE7 borked after Capcom added a RT patch. It remained unplayable only for a short time because in less than 2 days Proton 7.0-3 released and it fixed everything. After the update the game works just as it did before without any issues loading saves or crashing. It is once again perfectly playable.
It only went like 4 hours ago at the time of writing this, but now everytime I try to play or even just load a save it crashes.
Played the game from start to finish without issues.