Thank you @filo & @Kayo both of your posts were very helpful and lead to both the solution, and as a bonus the proper DKMS package being installed on my system.
In summary, form @filo’s link to the bugs.kde.org:
Having encountered the same problem with Spectacle under
LXQt+kwin_wayland today, I also confirm that it was fixed
by uninstalling the libva-vdpau-driver, which was a
leftover of old times.
Uninstalling libva-vdpau-drive did fix Spectacle and who knows what else. I’ve seen posts where uninstalling this package also solved problems with OBS Studio.
As a bonus, the information from @Kayo got the correct DKMS package installed.
Thank you guys. Really helps us “regular” users when you take time to help us.
I’ll mark this post as the solution to help others who run into this issue.