BSOD 0x116 caused by dxgkrnl.sys+5d134 Nvidia Optimus

Hi there,
I have MSI All-IN-One computer AE2211G:
• Windows® 7 Home Premium x64
• Intel® Core™ i3-2100
• 21.5" 1920 x 1080 ; Multi Touch Panel
• INTEL HD
• nVIDIA GeForce GT540M Graphics
• 2x2 GB DDR3 1333MHz
• WD Blue HDD 500GB

I'm currently using Driver released by MSI NVIDIA Synergy VGA Driver (301.42_desktop_winvista_64bit_international)
Release Date 2012-06-01 Version 8.17.13.142
The driver was downloaded from official MSI website:
MSI Global - The best gaming gears maker in the world 64

I'm experiencing a graphics card issue causing 0x116 BSOD caused by dxgkrnl.sys+5d134.
I think this issue is caused by graphics driver or faulty GPU. The most common issue is when I open NVIDIA control Panel and go to "Adjust image settings with preview option" I get a lot of screen flicker and "Display Driver NVIDIA Windows Kernel Mode Driver, Version 301.42 stopped responding and has successfully recovered". After few resets of driver Control Panel window suspends and I've to force it to close.
Sometimes it is recovering sometimes I get BSOD. It's happening most often when Optimus is activating geforce card. If I go to device manager and disable geforce computer is working stable.

First thing I did was:
1. Took computer apart and clean it from dust checked cable connection.
2. changed termal paste under CPU.
3. Test memory with memtest.
4. Test CPU with Prime95.(temperature 62 stress, 42 idle)
5. Recover computer to factory default and update graphic card to 301.42 driver.
6. Tested geforce GPU with Furmark(working 14 hours max temp 67 degree)
7. Checked HDD.
8. updated Intel chipset and Intel HD driver.

All test didn't show any issues with hardware. It was still crashing reseting i recovering driver.
Then I've tested GPU with 3Dmark which sometimes quit abnormal with "lost device" or "fullscreen state lost" error message.

I tried different drivers downloaded from nvidia website with no luck:
350.12-notebook-win8-win7-64bit-international-whql
344.48-notebook-win8-win7-64bit-international-whql
334.89-notebook-win8-win7-64bit-international-whql
And it was only worst.

At this point I though that Geforce GPU is faulty and send computer to MSI for repair (warrenty was over so I had to pay for repair). After a month I get email from MSI that computer is working correct and they didn't saw any abnormal behavior. It came back to me in same state as I've sent it.

Then I thought maybe memtest isn't detecting faulty Memory or PSU is faulty no giving enought power under stress. Changed both also took out hard drive and put brand new one. Installed fresh windows 7 Home Premium x64 from DVD, installed drivers from MSI website and problem still persist.

BSOD:
==================================================
Dump File : 050815-21512-01.dmp
Crash Time : 2015-05-08 08:43:28
Bug Check String :
Bug Check Code : 0x00000116
Parameter 1 : fffffa80`081dc4e0
Parameter 2 : fffff880`0f1d64d4
Parameter 3 : 00000000`00000000
Parameter 4 : 00000000`00000002
Caused By Driver : dxgkrnl.sys
Caused By Address : dxgkrnl.sys+5d134
File Description : DirectX Graphics Kernel
Product Name : Microsoft® Windows® Operating System
Company : Microsoft Corporation
File Version : 6.1.7601.18510 (win7sp1_gdr.140615-1511)
Processor : x64
Crash Address : ntoskrnl.exe+72a40
Stack Address 1 :
Stack Address 2 :
Stack Address 3 :
Computer Name :
Full Path : C:\Windows\Minidump\050815-21512-01.dmp
Processors Count : 4
Major Version : 15
Minor Version : 7601
Dump File Size : 456*216
Dump File Time : 2015-05-08 08:44:57
==================================================

After two months I still don't know what's wrong with this computer. Please tell me if you need more information. I hope we can find a solution for this issue. Thanks for the help.

Hello, mrAfi and welcome to Sevenforums. I will see if I can be of any help. Could you tell me if that model uses Optimus technology? Does it switch between the on board graphics and the Dedicated card? You had 1 dump file recently. all ther others were several months old. I looked at a few of the older dumps and they seemed to be the same as what you have now.

Thank You very much for reply.
Yes it uses Optimus technology and it's switching between graphics cards check that using Nvidia Optimus State Viewer and also analyzing MSI Afterburn load monitor.

Code:

VIDEO_TDR_FAILURE (116)
Attempt to reset the display driver and recover from timeout failed.
Arguments:
Arg1: fffffa8008d54010, Optional pointer to internal TDR recovery context (TDR_RECOVERY_CONTEXT).
Arg2: fffff8800f3bf4d4, The pointer into responsible device driver module (e.g. owner tag).
Arg3: 0000000000000000, Optional error code (NTSTATUS) of the last failed operation.
Arg4: 0000000000000002, Optional internal context dependent data.
A TDR failure (time delay and recovery) means the drivers crashed, but did not recover within the time allotted by Windows. So, Windows assumed a graphics failure and shut down to protect your computer. That is common with switchable graphics. This is your current driver.

I have read about TDR allready but there are no keys in registry
[HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\GraphicsDrivers]
to adjust delay(TdrDelay) or to turn it off (TdrLevel) for testing.

Code:

nvlddmkm
start end module name
fffff880`0f221000 fffff880`0ffe3000 nvlddmkm T (no symbols)
Loaded symbol image file: nvlddmkm.sys
Image path: \SystemRoot\system32\DRIVERS\nvlddmkm.sys
Image name: nvlddmkm.sys
Timestamp: Tue May 15 02:35:36 2012 (4FB20748)
CheckSum: 00DA5E91
ImageSize: 00DC2000
Translations: 0000.04b0 0000.04e4 0409.04b0 0409.04e4
I think you can see that your driver needs updating. The problem is that many of the manufacturers alter the graphics drivers to make them work the way they designed their computer to work. So, usually a driver download from anywhere other than MSI won't work correctly. You should be able to download the driver for your particular machine from MSI. I believe this is your computer, MSI Global - The best gaming gears maker in the world. If it is, please download and install new graphics drivers listed for your machine. I would suggest you uninstall the older drivers and clean up the older drivers which are left over by following this Drivers - Clean Left over Files after Uninstalling. When you run DDU please be sure to only select Nvidia Graphics drivers.

Allready done that the 301.42 are the latest drivers supplied by manufacturer and yes this one are altered by manufacture because when I download 301.42 version from guru3d website installer doesn't find compatible hardware. I cannot find any new driver that would work stable and I allready checked:
350.12-notebook-win8-win7-64bit-international-whql
344.48-notebook-win8-win7-64bit-international-whql
334.89-notebook-win8-win7-64bit-international-whql
I was using latest version of DDU to uninstall nvidia driver and install another one.

I would also make sure and monitor the CPU and Graphics temps at all times.

Computer was cleaned from dust and also have changed termal paste. Temp of GPU durning 14h Furmark didn't exceed 67 degree. CPU with 100% has temperature 58 degree.

Also, please open an elevated command prompt ( click start, type cmd in the search box, right click on the cmd entry and select run as administrator) in the black box that opens, copy/paste sfc /scannow. If you decide to type it, notice the space between the sfc and the /. It is a system file checker which will scan your system files and attempt to correct any missing or corrupt files. What we want are the results to say windows found no integrity violations. If it says files were found but could not be repaired, close the box, reboot and run it again, after opening the administrative command prompt. You may have to reboot and run it three times for it to repair all system files. If it can't repair them after 3 reboots, let us know.

Allready tried that too with with no luck

You can also make sure you have the latest Direct X from here How to install the latest version of DirectX amd also make sure your Windows updates are current.

DirectX is updated to latest version