VDPAU doesnt work?

Lenovo T460 with GF940M (optimus)
370.23 beta driver
Ubuntu 16.04 with 4.6.0 kernel
running lightdm on top of xorg-server 2:1.18.3-1ubuntu2.3

driver properly installed already and OpenGL functioning normally.

vdpauinfo gives me this:

display: :0   screen: 0
VDPAU nvidia: Version: NVIDIA VDPAU Driver Shared Library  370.23  Mon Aug  8 17:28:47 PDT 2016
VDPAU nvidia: Error detected 9 351  5
VDPAU nvidia: Backtrace:
--: /usr/lib/x86_64-linux-gnu/libvdpau_nvidia.so [0x7f4361249000] DSO load base
00: /usr/lib/x86_64-linux-gnu/libvdpau_nvidia.so [0x7f4361277563] 
01: /usr/lib/x86_64-linux-gnu/libvdpau_nvidia.so [0x7f4361269fc3] 
02: /usr/lib/x86_64-linux-gnu/libvdpau_nvidia.so [0x7f4361251d7c] vdp_imp_device_create_x11
Error creating VDPAU device: 1

Xorg.0.log regarding to NVIDIA

[     4.514] (**) |   |-->Device "nvidia"
[     4.569] (II) Module glx: vendor="NVIDIA Corporation"
[     4.570] (II) NVIDIA GLX Module  370.23  Mon Aug  8 17:25:10 PDT 2016
[     4.571] (II) LoadModule: "nvidia"
[     4.571] (II) Loading /usr/lib/xorg/modules/drivers/nvidia_drv.so
[     4.583] (II) Module nvidia: vendor="NVIDIA Corporation"
[     4.583] (II) NVIDIA dlloader X Driver  370.23  Mon Aug  8 17:02:18 PDT 2016
[     4.583] (II) NVIDIA Unified Driver for all Supported NVIDIA GPUs
[     4.593] (II) NVIDIA(0): Creating default Display subsection in Screen section
[     4.593] (==) NVIDIA(0): Depth 24, (==) framebuffer bpp 32
[     4.593] (==) NVIDIA(0): RGB weight 888
[     4.593] (==) NVIDIA(0): Default visual is TrueColor
[     4.593] (==) NVIDIA(0): Using gamma correction (1.0, 1.0, 1.0)
[     4.594] (**) NVIDIA(0): Option "nvidiaXineramaInfo" "False"
[     4.594] (**) NVIDIA(0): Option "AllowEmptyInitialConfiguration"
[     4.594] (**) NVIDIA(0): Enabling 2D acceleration
[     4.787] (II) NVIDIA(0): NVIDIA GPU GeForce 940MX (GM108-A) at PCI:6:0:0 (GPU-0)
[     4.787] (--) NVIDIA(0): Memory: 2097152 kBytes
[     4.787] (--) NVIDIA(0): VideoBIOS: 82.08.54.00.06
[     4.787] (II) NVIDIA(0): Detected PCI Express Link width: 4X
[     4.787] (II) NVIDIA(0): Validated MetaModes:
[     4.787] (II) NVIDIA(0):     "NULL"
[     4.787] (II) NVIDIA(0): Virtual screen size determined to be 640 x 480
[     4.787] (WW) NVIDIA(0): Unable to get display device for DPI computation.
[     4.787] (==) NVIDIA(0): DPI set to (75, 75); computed from built-in default
[     5.432] (II) NVIDIA: Using 12288.00 MB of virtual memory for indirect memory
[     5.432] (II) NVIDIA:     access.
[     5.453] (II) NVIDIA(0): Built-in logo is bigger than the screen.
[     5.453] (II) NVIDIA(0): Setting mode "NULL"
[     5.456] (==) NVIDIA(0): Disabling shared memory pixmaps
[     5.456] (==) NVIDIA(0): Backing store enabled
[     5.456] (==) NVIDIA(0): Silken mouse enabled
[     5.456] (==) NVIDIA(0): DPMS enabled
[     5.456] (II) NVIDIA(0): [DRI2] Setup complete
[     5.456] (II) NVIDIA(0): [DRI2]   VDPAU driver: nvidia
[  2623.402] (II) NVIDIA(0): Setting mode "NULL"