Okay so OP here, just randomly had to re-install VLC after a HDD crash and remembered this thread, lo and behold it became active again at the
perfect time.
I did get it working but my solution throughout the last two years has literally just been to downgrade (Ended up having to do so successively which took way too long but iirc... and I might be wrong on this the last version of VLC that actually worked with the NVIDIA control panel was 2.2.4, although I will have to re-confirm this). This is in-line with what
oggmeista said, suggesting the issue is with the newer versions of VLC player and not something else.
I think I originally tried all of the solutions presented here to fix it, but for the sake of future users who are also frustrated by this issue I will once again attempt all of the suggestions here separately and document their results.
First off I tried
Rémi Denis-Courmont's suggestion of disabling
"Video decoding hardware acceleration". I couldn't find an exact match to that phrase in the preferences, but I believe it is the "Hardware Decoding" option under the FFmpeg a/v decoder section. Unfortunately this did not solve the problem.
Next I attempted
Lotesdelere's workaround method, but unfortunately this NVIDIA Control Panel only allows one to select specific GAMES, and the settings I'm referring to apply exclusively to video.
Third, I took
Jean-Baptiste Kempf's advice of putting it on Direct3D9 output... and surprisingly it...
actually worked!!
So if anyone out there in the future finds this issue problematic, try out Jean-Baptiste Kempf's idea, it worked for me, so chances are it would work for you as well. There is also the option of going back to previous versions of VLC, as I can personally attest to it working on WIndows 10 64 bit.
Rémi Denis-Courmont: This is not about the VLC version. This is about dual-GPU setups. The NVIDIA control panel forces VLC on the iGPU.
While I am positive you know much more about how VLC works than I do, my experiences seem to suggest that this is not completely true. I used various old versions of VLC 2.x.x for almost 5 years (~2013-late 2017) with absolutely no issue and without needing to tweak any settings, and I have always had some type of integrated INTEL GPU. I can also say with 100% certainty that from 2018-2019 I had an iGPU & a 780ti, that I was able to successfully use NVIDIA Control Panel's settings with
instantly once I reverted far enough back through VLC releases (almost certainly 2.2.4 if I am remembering correctly). Currently I am using an iGPU & 1060ti.
I am sure it isn't at the top of anyone here's list, but personally I would
very much prefer using a more modern output than Direct3D9... considering it's almost TWO DECADES old now (not that there's anything wrong with that but there have been numerous improvements since then), so if any of this gave some kind of insight to you kind developers into what the issue may be, or if anyone had any other ideas for how to remedy this, I know that I (and others as well) would really love it!
But regardless, thank you everyone for all of the helpful tips! And to any future troubleshooters, I hope this information helps some of you out there!