After closing game Advanced Optimus switched GPUs however I forgot about background program that was using Nvidia GPU to render.
Froze whole system and once it recovered the colors are off, sRGB and DisplayP3 look almost the same and only Native keeps some live in colors.
If the system runs on Nvidia GPU problem doesn't present itself and colors are properly displayed, tried with both Advanced Optimus and Nvidia dGPU only modes.
Did a complete DDU uninstall of both Nvidia and Arc drivers. Did Asus Cloud Recovery. Issue is still present.
Small example of color washing in Discord (no HDR, 100% prightness, Asus Display P3 color profile)
Arc iGPU
Nvidia dGPUPoint of note is I'm using GHeper instead of Armory Crate for months now, uninstalled by official tool by Asus when bought and today after factory setup was done. Issue was also present with Armory Crate installed.
Therefore I'm asking here if anyone had similar issue here and maybe to get an idea for further course of action.