There doesn’t seem to be any Xserver running. Are you logging in from remote over vnc/rdp? In that case, it’s only a software Xserver.
Yes I am connecting remotely via rdp. If I understand correctly, it is only an Xserver software that is present on machine 2? and concerning machine 1 where things seem to work?
There might either be a direct rdp connection to the real Xserver running via x11vnc/vnc0server or virtualgl is in use.
What do you mean by “connect directly to the machine”?
Please run nvidia-bug-report.sh as root and attach the resulting nvidia-bug-report.log.gz file to your post.