Unfortunately, I wish I have made screenshots and such when debugging NVDisplay.Container.exe years ago and show you all the functions and the call ups of .dll for telemetry and loggings and how they connect to the internet. Maybe whenever I have time in the future to cross this path again... I will make sure to document everything
Whenever NVDisplay.Container.exe request access to Internet [I use SImplewall] the logs files that's found inside "C:\ProgramData\NVIDIA" gets locked and to confirm that... I simply try to delete them and it will tell you it can't be deleted because it's opened by NVDisplay.Container.exe process.
Once it finishes uploading [by monitoring network activities by looking TCP connections that it's connected by NVDisplay.Container.exe] those logs files gets unlocked & partially can be deleted except a few others .logs files which it keeps logging continuously.
NGX libraries and profiles aren't affected by this because they get updated through "nvngx_update.exe -forced_update" command whenever a new driver gets installed or whenever you open up a new game
Telemetry API that is found inside NVDisplay.Container.exe calls up _DisplayDriverRAS.dll & other .dlls related to telemetry to collect and write log files and then they upload it to Nvidia servers [Usually many subdomains of gfe.nvidia.com]. I don't know the intervals of that whole process but according to firewall events NVDisplay.Container.exe keeps accessing internet around 40 ~ 60 times a day.
Sometimes this happens along with Windows Defender when it tries to do signature updates.
Personally after using NVClean your amazing tool, I go further more deep and customize the driver with much deep removal of telemetry files and loggings as they aren't enough using NVClean alone, over 30 files gets removed after the driver gets installed to prevent losing sign driver certification so.. in that way I keep it signed and have clean driver without single log file being written or needing to access to the internet for uploading
Sorry for the long comment, I fully understand if it's not enough to prove it. Forgive me for wasting your time. I just requested this since I have found it's the most harmless way to do it without affecting driver functions.