This bug was fixed in the package ubuntu-drivers-common - 1:0.9.2.3

---------------
ubuntu-drivers-common (1:0.9.2.3) impish; urgency=medium

  * gpu-manager.c:
    - Fall back from on-demand to on if nvidia < 450 (LP: #1957094).

 -- Alberto Milone <[email protected]>  Tue, 18 Jan 2022
09:09:16 +0000

** Changed in: ubuntu-drivers-common (Ubuntu Impish)
       Status: Fix Committed => Fix Released

** Changed in: nvidia-settings (Ubuntu Impish)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1957094

Title:
  on-demand mode doesn't work with nvidia-390

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