Sounds like a fix is in 525.105.17:

> Fixed an issue which could cause applications to run at 1 FPS
> when using an NVIDIA PRIME Display Offload sink as the only
> active display.

[https://www.nvidia.com/Download/driverResults.aspx/202351/en-us/]

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https://bugs.launchpad.net/bugs/2009767

Title:
  External HDMI monitor is laggy on NVIDIA-525 reverse PRIME system

Status in OEM Priority Project:
  New
Status in nvidia-graphics-drivers-525 package in Ubuntu:
  Confirmed
Status in xorg-server package in Ubuntu:
  Fix Released
Status in nvidia-graphics-drivers-525 source package in Jammy:
  New
Status in xorg-server source package in Jammy:
  Confirmed
Status in nvidia-graphics-drivers-525 source package in Kinetic:
  Confirmed
Status in xorg-server source package in Kinetic:
  Fix Released

Bug description:
  [Summary]
  When the graphic mode is on-demand mode and plug in the monitor to HDMI port, 
there are two issue occures:
  1. External monitor's screen is very laggy in external monitor mode only.
  2. External monitor's screen sometimes (~50%) will be blak in join display 
mode.

  [Steps to reproduce]
  1. Boot in OS
  2. Plug in the external monitor in HDMI port
  3. Find the cursor moving in external monitor is laggy

  [Workaround]
  Downgrade to NVIDIA driver 515.

  [Additional information]
  Feedback from NV:

  An NVIDIA driver built with the features needed to get rid of the laggy 
monitor problem causes Xorg 1.21.1.3 to crash. There's a patch for Xorg to fix 
the crash (https://gitlab.freedesktop.org/xorg/xserver/-/issues/1275) and it 
was first included in the 1.21.1.4 release.
  Since the older X servers crash, NVIDIA deliberately does a version check in 
the driver and enables these features for Xorg servers that are known to work, 
i.e. 1.21.1.4 or higher.

  This unfortunately prevents backporting the fix to 1.21.1.3.
  Engineering has chosen this approach since a crash is worse than the
  low FPS lag and the user might lose work merely by plugging/unplugging
  displays. If it was about a performance degradation, slight
  corruption, or something non-fatal, we wouldn't need to check Xorg
  version

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