Little update about this.

The problem is still present with nvidia-driver 460, on Ubuntu 20.04.


Also I've set up another laptop with nvidia-driver 495 on Ubuntu 21.10 and the 
problem is still there.

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https://bugs.launchpad.net/bugs/1876616

Title:
  External Nvidia GPUs won't work with recent proprietary drivers

Status in ubuntu-drivers-common package in Ubuntu:
  New

Bug description:
  Since Nvidia drivers version 396 (still present in 440), `gpu-manager`
  generates a configuration that does not allow External GPUs.

  The reason is a new XConfig option introduced by Nvidia:
  "AllowExternalGpus" which defaults to False.

  
https://download.nvidia.com/XFree86/Linux-x86_64/396.18/README/xconfigoptions.html#AllowExternalGpus

  The rationale behind their default value seems to be that eGPUs are
  not necessarily used for display but can be used to add general
  purpose GPU computing capacity to computers that don't need it on a
  permanent basis. It seems to me that eGPU usage for display should
  also be covered on Ubuntu.

  As there is no clear way to configure the output of gpu-manager in the
  documentation, it makes it  fiddly to add this setting.

  
  Workaround available:
  For now I've done it by duplicating 
`/usr/share/X11/xorg.conf.d/11-nvidia-prime.conf` generated by gpu-manager into 
`/etc/X11/xorg.conf.d/12-nvidia-prime-fix.conf` and adding the setting in 
there, in order to override the configuration generated by gpu-manager. However 
this is not future-proof as this means that future updates to gpu-manager will 
not be taken into account in my configuration. It's also quite an obscure 
solution for most users.

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