My experience with NVIDIA's drivers in general is that after some point, I just have to stop updating them because rather than improving something, they break things. I did read about that issue you mentioned, my problems with newer drivers are stuttering in games and stability issues. 368.81 is the last version that at least gets most things right, but I prefer 347.88 as it's the most solid in my experience. Luckily most games I play occasionally work fine with 347.88, but certain titles like DOOM (2016) require something newer to run optimally. Vulkan API also wasn't around when 347.88 was released.
I also have a mouse for which exist some outdated custom driver, which likes to make PC BSOD. Had to prevent Windows Update from installing this one as well. The only thing I found useful about it is ability to set USB polling rate from its application, but universal Sweetlow mouse driver works well for that purpose. I just remembered switching the polling rate with the help of buggy driver I mentioned even crashed Windows 7 sometimes, but after the switch, there were no issues. There aren't any issues at all with Sweetlow driver.
They shouldn't host buggy drivers on Windows Update, but since you have support for majority of graphics cards bundled in one driver package, that won't ever change in NVIDIA's camp unless they change their ways.