The CES demo did show it working. Watch it again. The left laptop has v-sync enabled. The FPS changes slightly, but the frame time value ie the refresh rate does not move except for 1/100th increments about 3 times. The right shows the FPS and frame time changing rapidly by up to 1/10 increments. Neither is fixed, but both are syncing. It's not 50hz v-sync or you'd see the same as the left where the frame time is static only changing in the 1/100 value range. The only issue with the demo is the right laptop's render isn't complex enough to show large swings in FPS to make it as obvious as Nvidia's demo.
The fluctuations you describe are what you get whenever you turn vsync on, regardless of what framerate you set it to. Fluctuations of a tenth of a FPS are not indicative of variable refresh, they are indicative of imprecision in the framerate counter. Framerate counters count the time interval between frames, and then invert it for frames per time.
I can get fluctuations well above 0.1 FPS with vsync on on my current, aged machine, that certainly doesn't have variable refresh.
Rapid fluctuations slightly below 50 is what 50 Hz vsync looks like. It's what I get when I stare at a blank wall in a game with vsync on, fluctuations in the 59.7-59.9 range, occasionally reading 60. Framerate counters are not precise enough for these fluctuations to be significant, and they're certainly not indicative of a variable refresh rate.
There's a reason the render isn't complex enough to show large swings in framerate. Because the demonstration isn't showing variable refresh. It shows two STATIC refresh rates, with vsync on. Normal, standard, decades-old vsync.
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