01:02:18.706: Output 'simple_file_output': Number of lagged frames due to rendering lag/stalls: 10574 (63.7%)
01:02:18.706: ==== Recording Stop ================================================
01:02:18.706: Video stopped, number of skipped frames due to encoding lag: 15869/16612 (95.5%)
Rendering lag/stalls happen when your GPU is over-loaded, and OBS can't get any GPU time to handle its hardware-accelerated housekeeping tasks. Normally you can help this by running OBS as Administrator. But...
You're using the QSV encoder. QSV uses GPU resources to encode video (NVENC on nVidia cards does not, as it's a separate part of the GPU reserved JUST for video encoding). You might be able to help this out by swapping to x264 Software, but...
You're on an i3. These can charitably be described as 'email and facebook only machines', and are not up to the computationally-heavy task of realtime software video encoding.
Unfortunately the short version is that your system is below the minimum performance needed. You will need a much more powerful system to record or stream out video. :/
You could try encoding it with CPU on one of those faster x264 encoder settings, since intel integrated graphics solutions are not fast enough at all for keeping up with both game graphics rendering and video encoding, but having even a low-ish budget graphics card would help to offload some processing even when keeping this i3 in place.
Your case sounds like an integrated GPU is a tight bottleneck here.