I analyzed the problem and found the culprit

Each time a window manager is (re)started, due to the conf file
/etc/init/gpu-manager.conf , the program 'gpu-manager' is called. This
program does not like my NVIDIA card, so it calls "update-alternatives"
to force X11 to use mesa drivers and libs, even though NVIDIA drivers
and libs are installed


TO "solve" the problem I moved away the culprit
# mv /usr/bin/gpu-manager   /usr/bin/gpu-manager~~
and used
# update-alternatives --config i386-linux-gnu_egl_conf
# update-alternatives --config i386-linux-gnu_gl_conf
and then restarted .the system

Now it works as a charm, getting superb framerates in games etc etc.

Some more info

I have a card  NVIDIA Corporation GK208 [GeForce GT 730] 
I installed Ubuntu xenial
I am running kernel 4.8.0-41-generic
gpu-manager is part of ubuntu-drivers-common     1:0.4.17.2

I attach the log of gpu-manager


** Attachment added: "log of gpu-manager"
   
https://bugs.launchpad.net/ubuntu/+source/nvidia-graphics-drivers-367/+bug/1665581/+attachment/4834000/+files/gpu-manager.log

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https://bugs.launchpad.net/bugs/1665581

Title:
  Xorg cannot use nvidia, missing symlink

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