You know Cyberpunk 2077 is a pretty demanding videogame, I would say try to get at least 12GB of VRAM. The Intel Arc B580 is a pretty interesting option for budget friendly great performance GPU. If you could get the Ryzen 5600 instead of the 5500 would be nice too. Like in the build that was already suggested, the motherboard is PCIe 4, the GPU too but the CPU 5500 PCIe 3 which makes the whole GPU-CPU-mobo to work at PCIe3, huge bottleneck in the case of the ARC B580, which uses only a 8x PCIe bus. So, definitely if you can try at least a 5600.

You can do this. Search on YouTube for "Ryzen 5600 + RTX 3060 8GB Cyberpunk 2077 test" and check the graphics and the FPS, then do the same search but with the Intel ARC B580 instead of the RTX and compare. Just "CPU + GPU + videogame test (or benchmarks)" or "CPU + GPU + game tests" and you will see a compilation of game tests for that specific combo. And then just compare CPUs and GPUs combinations and see which one you like the most and is within your budget.

How do you know that you prefer 1080p over 2k? Have you already played what you wanna play in both resolutions and with the right builds? For what I've heard, Cyberpunk and in general open world, very detailed videogames, are better experienced played in 2k, with the right monitor, CPU, GPU and resources. I've heard that 1080p is more for like competitive shooting or when it just happen that you have a low spec setup.

Do you have a mechanical keyboard and a gamer mouse and mousepad?