You can open desktop mode inside of gamemode, just like any other game or application. I find it easier to use most desktop apps this way instead of adding them individually to steam.
To do this, download this script. Save it as a script and make the script executable. Finally right click the file and “add to steam”.
Some important notes with this: You can’t exit steam while running the desktop this way, so apps that require closing steam (like steam rom manager) won’t work. There are also a few apps that do weird things, like cryoutilities shows up super tiny this way. But generally most everything works.
Correct, proper game mode is a Wayland session running steam big picture mode with exclusive special features baked in. That’s why I said you don’t get all the features, but you do get a mostly similar UI experience.