Yes, another person recently started having the same issue. See topic below. Any new information would be appreciated.

http://forums.bistudio.com/showthread.php?147598-Endless-DXGI_ERROR_DEVICE_REMOVED-Crashes

Just managed to replicate this issue with another Steam game, Metro 2033. My next step is going to be a third reinstall, and test of Arma 2: Combined Operations without Steam. It must be a Microsoft package which is installed with Steam, Arma 3 or both that causes this issue.

@rogerx, I've tried 314.22, 314.07 and 310.90 with absolutely no luck. I've even forced VSync on for each version. It can't be my configuration, since I ran a custom install for each version which removed all profiles and since so many other people have the issue.

I'm stumped. I did notice an update for my graphics card (GTX 680) through Windows 8 update manager. I'll report back. - Edit: Update failed for unknown reason.

I am experiencing the same issue and have uploaded a section of my report file, along with DxDiagnostic information.

Below is a reference page containing a list of DXGI_ERRORs and a debugging function (ID3D10Device::GetDeviceRemovedReason) for DXGI_ERROR_DEVICE_REMOVED.

http://msdn.microsoft.com/en-us/library/windows/desktop/bb509553%28v=vs.85%29.aspx

    =====================================================================
     
    * Default NVIDIA & Arma 3 configuration (profile & .cfg).
    * Tested on stable and development builds.
     
       --- System ---
    Intel Core™ i7-3820 @ 3.60 GHz
    NVIDIA GeForce GTX 680 4GB - Drivers: 314.22
    Asus Rampage IV Formula
     
       --- Crash ---
    1. Small game artefacts.
    2. Monitor sleeps.
    3. GPU temperatures 50-60 degrees celsius.
    3. GPU fan speed 100%.
    4. 1st system restart fails (hardware component failure).
    5. 2nd system restart succeeds (fans normal).

       --- Driver Testing ---
    314.22: Failed
    314.07: Failed
    310.90: Failed