I solved the issue. Even though a newer nvidia-kernel-source was installed, m-a a-i nvidia did not upgrade the existing nvidia-kernel package which I thought it would do. I had to manually uninstall the old version nvidia-kernel package, delete /usr/src/modules/nvidia-kernel and the older nvidia-kernel .deb in /usr/src, then rerun m-a a-i nvidia. After that, the newest version of nvidia-kernel installed and nvidia-glx installed no problem.
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