i am using nvidia and wayland on kde and I am experiencing no problems except those I also had in xorg(ui elements sometimes become unresponsive after playing a game)
Not an expert, but to me it sounds like the issue is that "on demand" uses the iGPU for regular desktop parts and calls for the dGPU when you switch to something requiring more horsepower
The problem with this might be that the execution of this is slow and there's a few seconds between the iGPU switching off and the dGPU switching on
Yeah, that is what on demand is supposed to do. But when it freezes, the game already started and rendered the first few seconds on the dGPU. One time I managed to play for ~10 minutes before the freeze.
And it remains frozen. I once waited for ~1h and it didn't recover.