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While the DAG file itself is still smaller than the 3GB limit, there is a small portion of memory that is occupied by the OS and other entities as well. After the recent windows update, it is not not possible to mine Ethereum on a normal windows build with a 3GB 1060. You can still however mine it on Windows Server or Linux which do not take up as much vRAM as Windows 10. The current DAG file size is 2.33 GB which essentially means that windows is now taking up more than 660 mb of vRAM under windows 10 conditions. We are running a very learn installation of windows 10 and were unable to mine on it. As mentioned previously, Windows Server and Linux based rigs should still work fine.