This bug was fixed in the package nvidia-prime - 0.8.16~0.20.04.1

---------------
nvidia-prime (0.8.16~0.20.04.1) focal; urgency=medium

  * prime-select:
    - Make sure to update the initramfs, so that
      the driver options can be applied correctly.
      This time around we can also provide visual
      feedback (in the form of a progress spinner)
      while update-initramfs is running (LP: #1915003).

 -- Alberto Milone <alberto.mil...@canonical.com>  Wed, 10 Feb 2021
12:38:51 +0100

** Changed in: nvidia-prime (Ubuntu Focal)
       Status: Fix Committed => Fix Released

** Changed in: nvidia-settings (Ubuntu Focal)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1915003

Title:
  SRU: Always update the initramfs when changing power profile

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