I too am experiencing the issue with the 535 drivers. As others have done, I have downgraded to the 525 drivers to be able to start a new game and play. For the most part with this config it has been fine, although I have run into a couple lockups.
Steam Launch Options:
gamemoderun PROTON_LOG=1 VKD3D_SHADER_MODEL=6_6 PROTON_HIDE_NVIDIA_GPU=0 PROTON_ENABLE_NAVPI=1 %command%
Intel i9-13900K
rtx 3070ti
nvidia 525.125.06
ubuntu 22.04
kernel 6.4.10
ge proton 8.14