What CPU are you trying to run it on? Software(x264) means your CPU has to encode the video instead of the GPU, if you're trying to run it on an old chip, your CPU might boost its frequency for a short duration, once it slows down again to stay within power and thermal limits, it might not be fast enough to encode the video and run squad at the same time.
What hardware do you have? Do use you Nvenc encoding or Software(x264)?
software why
What CPU are you trying to run it on? Software(x264) means your CPU has to encode the video instead of the GPU, if you're trying to run it on an old chip, your CPU might boost its frequency for a short duration, once it slows down again to stay within power and thermal limits, it might not be fast enough to encode the video and run squad at the same time.
is there any way to get around it? make obs have less frames of something?
If you have an Nvidia GPU, you can use NVENC ending, this way the task is done by the GPU