Are you using USB-C to connect your monitor?
Myself and others have noticed that the Nvidia 535 drivers on some machines just simply do not work correctly. On my Nvidia 3060, it won't report the wattage and the GPU won't properly increase fan speed in response to usage.
If your i2c driver had no trouble before, then I would not recommend blacklisting it.
https://bugzilla.kernel.org/show_bug.cgi?id=206653
Test removing the blacklist on i2c.
Instead, completely purge all Nvidia and its configurations.
sudo apt remove --purge '^nvidia-.*'
Reinstall Nvidia:
sudo ubuntu-drivers install
Launch Software & Updates, navigate to the Additional Drivers tab and select the 470 (proprietary) driver and test if it is working.