@ptrblck
so I got the following error (I guess my system had an auto update), and after following all the steps I have provided in the answers above, I still get the same exact error. Do you have any tips how I could fix this?
$ nvidia-smi
Failed to initialize NVML: Driver/library version mismatch

a bit more details:
mona@goku:~$ cat /proc/driver/nvidia/version
NVRM version: NVIDIA UNIX x86_64 Kernel Module  460.39  Thu Jan 21 21:54:06 UTC 2021
GCC version:
mona@goku:~$ lsmod | grep ^nvidia
nvidia_uvm           1019904  0
nvidia_drm             53248  4
nvidia_modeset       1228800  5 nvidia_drm
nvidia              34095104  157 nvidia_uvm,nvidia_modeset