Unfortunately I cannot edit my original comment.
@ekurzinger While the forced vsync issue seems to be resolved for most apps, I still ran into some games to be forced vsync such as Left 4 Dead 2(native with -vulkan flag) and Quake 2(through proton experimental xwayland).
On Quake 2(the remastered) - if i remove focus from the window it uncaps fps, but if I focus back it caps it to 165(monitor refresh rate)
EDIT: this seems highly related to this 535.54.03 Screen tearing while gaming on Wayland session - #39 by Xpander as both under xorg and wayland I see some games cap at 165hz(forced vsync) regardless of forcecomp or not on X and exhibit the horizontal tearing
EDIT2: the issue for xorg which was reported on the screen tearing doesn’t seem to affect wayland as to why some games cap their fps to monitor still in 545