A5000 VGPU - Guest driver install error with "Not Supported By the Driver Release"

I have the following setup:
Ubuntu 23.04 server. with KVM running an Ubuntu 22.04

I use host manager and guest from: NVIDIA-GRID-Ubuntu-KVM-535.129.03-537.70
VGPUs seem to be properly configured and can be added to the VM
The VM shows the A5000 GPU

When I install NVIDIA-Linux-x86_64-535.129.03-grid.run the system exits with “GPU is not supported” [1]
The system shows:
05:00.0 3D controller: NVIDIA Corporation GA102GL [RTX A5000] (rev a1)

Any support is highly appreciated.

[1]
[ 71.282722] nvidia-nvlink: Nvlink Core is being initialized, major device number 235
[ 71.282728] NVRM: The NVIDIA GPU 0000:05:00.0 (PCI ID: 10de:2231)
NVRM: installed in this system is not supported by the
NVRM: NVIDIA 535.129.03 driver release.
NVRM: Please see ‘Appendix A - Supported NVIDIA GPU Products’
NVRM: in this release’s README, available on the operating system
NVRM: specific graphics driver download page at www.nvidia.com.
[ 71.285132] nvidia: probe of 0000:05:00.0 failed with error -1