I found a time to update the driver, but first I applied what someone here advised me to add to the kernel boot options: nvidia_drm.modeset=1. So I did that and then updated driver. That screen flickering and terminal travelling across the screen no longer happens but now the GPU load is holding steady between 20% and 30% which isn’t normal. The driver version now is 530.41.03. With driver 525.89.02 the GPU loading was always 5% tops.
So, why is the loading so high? Currently I’m only running 4 programs - Firefix, PCManFM, Pamac and Conky. I doubt that any of these can load the GPU that much, especially considering they never did with the previous driver version (525.89.02).