I've used a few distros that locked specific patch levels and that's just one of the kinds of issues you deal with. Sometimes that version has a bug and you have to wait for the next major release to get the update.

I'm using a rolling release distro, which comes with a different set of problems. But, I have the latest drivers and Wayland updates and have not encountered any significant issues using high refresh rate, VRR, HDR even while gaming.

It's also possible that Bazzite is using gamescope which does have significant issues with NVIDIA, even still. But the newest versions of Proton support using Wayland directly (instead of XWayland), so it's possible to avoid using gamescope entirely without losing access to display features.