It worked! I switched my machine back to hybrid mode (so that both Intel and Nvidia cards are visible in lspci) and added the nouveau.modeset=0 kernel parameters. And now I am able to select the Ubuntu (wayland) option and indeed it works: XDG_SESSION_TYPE=wayland, and the About dialog shows "Intel® HD Graphics 530 (Skylake GT2)" as the Graphics card.
It worked! I switched my machine back to hybrid mode (so that both Intel and Nvidia cards are visible in lspci) and added the nouveau.modeset=0 kernel parameters. And now I am able to select the Ubuntu (wayland) option and indeed it works: XDG_SESSION_ TYPE=wayland, and the About dialog shows "Intel® HD Graphics 530 (Skylake GT2)" as the Graphics card.
Thanks! So the bug is indeed in gnome-shell.