Couple of programs stopped working after 21.10 got a bunch of new packages updates

Hi

I am using Ubuntu 21.10
Linux 5.13.0-14-generic #14-Ubuntu SMP Mon Aug 2 12:43:35 UTC 2021 x86_64 GNU/Linux

After one of updates last week I can't run some applications when prime-profile is set to perfrormance (aps like mattermost, vs code, skypeforlinux). However couple of apps started working when I swithced to on-demand profile (slypeforlinux, vs code), mattermost is now only able to run when installed from snap.

So, when I start vs code with "Launch using dedicated Graphic card" I see in syslog:

Sep 8 08:24:50 sat-laptop systemd[2217]: Started Application launched by gnome-shell.
Sep 8 08:24:50 sat-laptop code.desktop[12594]: #033[90m[main 2021-09-08T02:24:50.808Z]#033[0m update#setState idle
Sep 8 08:24:50 sat-laptop code.desktop[12629]: libva error: /usr/lib/x86_64-linux-gnu/dri/i965_drv_video.so init failed
Sep 8 08:24:50 sat-laptop code.desktop[12594]: [12594:0908/082450.931321:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12828]: libva error: /usr/lib/x86_64-linux-gnu/dri/i965_drv_video.so init failed
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.191527:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12839]: libva error: /usr/lib/x86_64-linux-gnu/dri/i965_drv_video.so init failed
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.411031:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12843]: [12843:0908/082451.420185:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is swiftshader
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.492557:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12847]: [12847:0908/082451.499055:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is swiftshader
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.570328:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12851]: [12851:0908/082451.576883:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is swiftshader
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.648489:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12855]: [12855:0908/082451.651617:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is disabled
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.722470:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12859]: [12859:0908/082451.725154:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is disabled
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.795596:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12863]: [12863:0908/082451.806336:ERROR:gpu_init.cc(440)] Passthrough is not supported, GL is disabled
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.876208:ERROR:gpu_process_host.cc(1007)] GPU process exited unexpectedly: exit_code=159
Sep 8 08:24:51 sat-laptop code.desktop[12594]: [12594:0908/082451.876222:FATAL:gpu_data_manager_impl_private.cc(415)] GPU process isn't usable. Goodbye.
Sep 8 08:24:51 sat-laptop code.desktop[12869]: /dev/fd/3: No such file or directory
Sep 8 08:24:51 sat-laptop code.desktop[12868]: Server response:
Sep 8 08:24:52 sat-laptop code.desktop[12872]: /dev/fd/3: No such file or directory
Sep 8 08:24:52 sat-laptop code.desktop[12871]: Server response:
Sep 8 08:24:52 sat-laptop kernel: [ 992.142966] traps: Chrome_IOThread[12608] trap invalid opcode ip:55c2acede653 sp:7f7b0d166200 error:0 in code[55c2aa737000+5ee2000]
Sep 8 08:24:52 sat-laptop systemd[2217]: app-gnome-code-12594.scope: Deactivated successfully.

vainfo:

sat@sat-laptop:~$ vainfo
libva info: VA-API version 1.12.0
libva info: Trying to open /usr/lib/x86_64-linux-gnu/dri/iHD_drv_video.so
libva info: Found init function __vaDriverInit_1_12
libva info: va_openDriver() returns 0
vainfo: VA-API version: 1.12 (libva 2.10.0)
vainfo: Driver version: Intel iHD driver for Intel(R) Gen Graphics - 21.3.3 ()
vainfo: Supported profile and entrypoints
      VAProfileMPEG2Simple : VAEntrypointVLD
      VAProfileMPEG2Main : VAEntrypointVLD
      VAProfileH264Main : VAEntrypointVLD
      VAProfileH264Main : VAEntrypointEncSliceLP
      VAProfileH264High : VAEntrypointVLD
      VAProfileH264High : VAEntrypointEncSliceLP
      VAProfileJPEGBaseline : VAEntrypointVLD
      VAProfileJPEGBaseline : VAEntrypointEncPicture
      VAProfileH264ConstrainedBaseline: VAEntrypointVLD
      VAProfileH264ConstrainedBaseline: VAEntrypointEncSliceLP
      VAProfileVP8Version0_3 : VAEntrypointVLD
      VAProfileHEVCMain : VAEntrypointVLD
      VAProfileHEVCMain10 : VAEntrypointVLD
      VAProfileVP9Profile0 : VAEntrypointVLD
      VAProfileVP9Profile2 : VAEntrypointVLD

All mentioned apps stopped working simultaneously after update. I saw on apt upgrade list libva2 was one of the packages however I am not sure it is causing it. Also I am not sure it is a bug, so posting in questions section.

It would be great if anyone could help with this.