This bug was fixed in the package nvidia-settings -
470.57.01-0ubuntu0.20.04.3

---------------
nvidia-settings (470.57.01-0ubuntu0.20.04.3) focal; urgency=medium

  [ Jeremy Szu ]
  * debian/patches/18_remove_power-saving_if_on-demand.patch,
    debian/patches/19_lp1957094-adjust-on-demand-mode-description.patch:
     - Disable the item of power saving mode if on-demand is supported
       (LP: #1957094).
     - Leave the item there because the user might issue 'prime-select
       intel' manually. Thus, leave it there could prevent selection
       confuse.
     - Explain the on-demand mode if driver < 450.

 -- Alberto Milone <[email protected]>  Tue, 18 Jan 2022
15:43:01 +0000

** Changed in: nvidia-settings (Ubuntu Focal)
       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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