Stop right there.
You’re discarding the most vital information you have - the noise.
Step 0. Merge VOBs into MKV using any tool, MKVToolNix Downloads – Matroska tools for Linux/Unix and Windows for example.
Step 1. Carefully deinterlace resulting MKV using QTGMC. I use Hybrid as a front-end GUI, it has a ton of settings.
Here is all necessary settings:
Step 2. Only after these steps open a TVAI and use a Starlight (Mini) as a first step. It will produce best results, but underwhelming at first.
Step 3. Load SL result adain in TVAI. Use Proteus (or Iris Medium if your video is really bad) with Focus Fix.
You can try Rhea (not XL!), if your source is good enough. At this point, you are free to test - previews are rendering very quickly and you don’t have to wait for result. Tune your settings at your taste.
5060 with 8Gb is painfully slow with Starlight, I know it (I have one PC with 4070 8Gb and it takes 3 days to render a 5 minute clip).