Okay, now this issue has gone bad. I tried reinstalling Bandicam in an attempt to tweak the porblem somehow. I re-enabled IQS via Nvidia panel after installing. And guess what? Now the whole codec doesn't work at all. I tried the virtual monitor trick, no help. Even if i expanded to it, it gave me the same initiation error this whole problem started with.
If Actions works, we will try to fix this issue.
Thanks. Do you have a dedicated support team whom i can contact and inform about this?