Just have a fun practice to share. Sometime we have to sacrifice some clarity (resizing or downscaling) for smoothness over RIFE, especially for high resolution videos. The nvidia VSR is actually worth to be on for that. It compensates notably for the clarity loss. If the RIFE has already drained the computational power, just insert a budget second video card for VSR. I am on 7900xt (for vulkan RIFE) with 3060ti (for VSR). The VSR would be applied after the interpolation.

My video renderer is Dx11 configured to run on 3060ti. My video player is PotPlayer. Decoding with software. HDR Passthrough tested. Linked screengrab is taken on a video playback downscaled to FHD then cropped, interpolated and upscaled to WQHD. https://i.postimg.cc/W4LC1ggf/SVP-2.png

However, although the VSR is able to increase clarity, it also creates new artifacts. So I would suggest if only a small downscale is performed, use Lanczos or Bicubic to upscale. If need FHD to UHD, VSR may perform better.

I have a 7900XT with latest driver. I have replaced the rife_vs.dll and RIFE is still problematic when configured 2 or more threads on the out-of-the-box MPC-HC player with Avisynth.
It turns out that, just like @gerappa mentioned, rife_vs.dll is for Vapoursynth filter. I disabled the Avisynth filter, added the Vapoursynth filter, and peformed "Utilities - Set environmental variables for Vapoursynth".
Then everything worked: 4K, HDR, RIFE, 4 threads, Blackbar Removal. Thank you all for the solutions!