This update is for the Steam Deck Beta and Preview channels, and includes new features that are still being tested. You can opt into this in Settings > System > System Update Channel.
Note: This beta contains changes that were simultaneously released to SteamOS stable channel as 3.8.12, noted below
General
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Updated Mesa graphics driver to a new major release, containing many ray-tracing performance improvements, as well as other performance and functionality improvements
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Greatly improved VRAM management, improving performance and stability in cases where VRAM is limited
Fixed in 3.8.12
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Fixed issue with Steam streaming in Desktop Mode in fullscreen games
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Fixed a graphics driver issue where the main menu in Sniper Elite 5 would not render correctly
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Fixed various issues with the SD Card reader on some Legion Go S models
