[REGRESSION] VDPAU is not longer working with NVIDIA 535 drivers and Wayland

VDPAU previously worked with 530 drivers but doesn’t work with 535.54.03 driver and KDE Wayland.
OS: Archlinux 6.3.8-arch1-1
Error:

vdpauinfo
display: :0 screen: 0
Error creating VDPAU device: 1