Intel Arc Pro Graphics 32.0.101.8517 WHQL hotfix driver released
Version 32.0.101.8517 WHQL is listed as Q1.26.R2 and is marked by Intel as a hotfix release (which doesn’t happen very often).

This is a workstation-optimized driver for Intel Arc Pro GPUs. The package supports Arc Pro B70, B65, B60 and B50 discrete GPUs based on Battlemage, as well as Arc Pro A-series cards and mobile workstation GPUs. It also supports built-in Intel Arc Pro B390 and B370 GPUs with select Core Ultra Series 3 processors, which Intel lists under the Panther Lake codename.
The main listed driver highlight remains expanded graphics memory allocation for built-in Arc Pro GPUs in select Core Ultra processors. Intel says systems with 64GB of system memory can dynamically allocate up to 59.5GB, or 93%, to the built-in Arc Pro GPU under Windows 10 and Windows 11.
Highlights of this Workstation Driver:
Built-in Intel® Arc™ Pro GPUs in select Intel® Core™ Ultra Processors (series 3, 2 & 1) will support a variable increased graphics memory allocations in Microsoft Windows*10 and Windows*11 host systems. For example, a 64 GB host system can have up to 93% or 59.5 GB (64×0.93=59.5) working memory dynamically allocated to the Built-In Intel® Arc™ Pro GPU

Source: Intel
Intel does not provide a separate fixed issues section for this hotfix. The release notes still list several known issues, including Ansys Mechanical visual corruption after a solve, PugetBench for DaVinci Resolve Studio intermittent benchmark crashes and Adobe Premiere Pro HEVC export crashes on certain Windows OS builds for Series 3 built-in Arc Pro GPUs.
Source: Intel