Unable to select high quality shadows

Bought a new laptop, every thing works fine and it runs gmod no problem, except across all source engine games I’ve noticed I cant select high quality shadows and it detects the software version of DirectX to be 9 instead of 9.0c, and I have set the -dxlevel flag to show hardware at 11.1 as it should be

Specs are as follows:
OS: Windows 8 x64
CPU: i7-3630QM
GPU: 660M
RAM: 8GB

Anyone know why it would be detecting the improper software DX version and how I would go about fixing this

Windows 8 is your problem. Wait and hopefully it will get fixed. I hope they don’t stop support for windows xp anytime soon :s

looking around makes me think its something to do with nvidia optimus, and its a known problem that no one seems to be willing to fix, nvidia claims its valves problem, valve blames nvidia