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I've had this problem for the last few Xe driver updates. My laptop also has an ARC 370M GPU.
The last 2 times either ARC control (or windows update) has tried to upgrade the drivers for the Xe GPU, my laptop screen responds for a few seconds, then the just displays the last thing on the screen. My laptop hasn't frozen though as I can still hear audio from music or video I am streaming. I can also plug/remove USB devices and my laptops gives me the audio notification of devices being added/remoevd. I have tried the graphics driver reset (Win + Ctrl + Shift + B) and that doesn't resolve issue. The funny thing is, when I sleep the laptop, and resume, the display will work again for 2-3 seconds then freeze again. This is infinitely repeatable, which is how slowly over a series of sleeps/resumes I was able to go into my device manager and roll back the driver.
The other strange thing is, if I plug a monitor into the HDMI out of my laptop, or from USB-C to DP, those monitors function fine even though my laptop screen is frozen.
One more strange thing I have noticed is that when I use a driver that freezes my screen, my laptop's built in webcam does not work.
My current version of Xe driver according to device manager is 31.0.101.3688
I have tried these WHQL versions from the Intel website
5333, 5382, 5445
I have also tried HP drivers from their website
All have had the same problem. I would REALLY like to upgrade my drivers as they are from 2022.
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The fact that external monitors connected via HDMI or USB-C to DP function normally while the laptop screen remains frozen suggests that the issue may be specific to the laptop's display or the interaction between the GPU and the laptop's built-in display.
Given that you've tried multiple versions of the Xe drivers from both Intel and HP's website, and the problem persists across all of them, it's clear that a driver update alone may not resolve the issue.
But I observed that there is a new arc driver update, please visit this link: Intel® Arc™ & Iris® Xe Graphics - Windows*
Tyler

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