[snyft]

18.5 Works fine with same settings.

18.8 will be with us shortly.

Looking at the log I see many add-ons, scripts etc that are yet to make the Matrix update; given your extras I suggest a bit of a pause. If you want to push the envelope I would start with a vanilla plain version of Matrix in portable mode, ensure it's functionality before loading up with caution.

Thanks but I'm already using Matrix in portable mode and this is the only negative thing that i have encountered. 
Included a phone video of the craziness : https://youtu.be/SR4QP_2KhM4

Might as well add what i have tried without success:
1) Uninstall newest Nvidia drivers (DDU) and reinstall without PhysX - strangely worked fine for like 10 seconds
2) Removed EDID driver and tried with Windows original
3) Disabled fullscreen optimisation (it's enabled, again since it did nothing)
4) Disabled game mode