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OBSE Automatically works if you put all the files in the package into the game folder. It comes with a SteamLoader file that works as soon as you launch the game from the Steam Library.
I Personally recommend copying all of the files from the OBSE Download Folder and pasting them directly into the game's folder. You can find the location by right clicking the game in your library, looking at the properties, and going to the Installed Files tab. There should be a "Open File Location" button that will take you directly to the folder of the game.
but now i gotta find i way to move steam out of my OS folder :/
But I LOVE OblivionReloaded!!!
It also happens every so often with Nvidia GPUs. It only lasts for a few seconds on my end, and the way I've noticed it stop is by pulling up the Inventory or other menu for a few seconds, then exiting that menu. It mainly happens with dresses for females with my card.
Oblivion GOTY hasn't been updated since the DLC Houses, Quests, and Horse Armor came out. That was over a decade-and-a-half ago. Bethesda has left it alone since then. The Remaster is the one that Virtuos and Bethesda were pushing, which runs on two engines.
Look for incompatibilities, or verify files in Steam. Sometimes mods will delete files for some reason and they need to be re-downloaded by verifying the integrity of the files.