this is a known BUG inlast release as the timeout is simply to short … and nvidia-installer-dkms is not used on install process we do install nvidia-dkms and nvidia-utils via pacman after detecting if live-session runs on nvidia drivers.
So i would say failed install is not related to nvidia drivers it is timing out on try to fetch the packages…
But we do try to replicate this with the same ISO after your report and none of us have this issue.
Would be interesting to see your /etc/grub/default if the DRM modesetting nvidia option is there or not.
And nvidia-installer-dkms is not doing any huge magic to configs aside from adding the kernel parameter.
It could be that the initramfs images where not rebuilded correctly…
You can check script also in testing mode what will not do any changes but gives output on what exactly it would do: nvidia-installer-dkms -t
Another thing that comes to my mind is that it could be possible that your firmware is set to use Nvidia GPU per default?