My 1060 3GB just died—time to upgrade?

After years of reliable performance, my trusty 1060 3GB, which I bought when I built my PC in 2017, has finally given up on me—likely due to a VRAM issue. It had already been struggling with newer, more demanding games, so I was already considering an upgrade. The challenge is that my system’s heart is an Intel i5-6400, and according to my motherboard specs, the best upgrade I can make is to an i7-7700.

Now, I’m in a bit of a dilemma. I’m confident that any graphics card beyond a 3060 would bottleneck with this CPU, even if I upgrade to the i7-7700. So, I'm torn between sticking with a more budget-friendly option like a 3050 or going for a 3060 or RX 6600, paired with an i7-7700 upgrade. It’s a tough call—do I just make the most of my current setup with a modest GPU upgrade, or go all-in and future-proof a bit with both a new CPU and GPU?