FetchContent_Declare with CMAKE_ARGS does not work

CMAKE_ARGS has never been supported for any version of FetchContent. Regardless of whether you were using FetchContent_Populate() or FetchContent_MakeAvailable(), the configure step has never been invoked by the sub-build. Whatever you were expecting CMAKE_ARGS to do, it wasn’t having any effect and at best was being silently ignored (and continues to be).

How am I to set cmake configure args for this?

I explained what you need to do in my previous reply. It would look something like this (with the caveats as noted in that previous reply):

include(FetchContent)

FetchContent_Declare(
    glfw
    GIT_REPOSITORY  https://github.com/glfw/glfw.git
    SOURCE_DIR      "${CMAKE_CURRENT_SOURCE_DIR}/glfw-src"
    GIT_TAG         "master"
    GIT_SHALLOW     TRUE
)
set(GLFW_BUILD_WAYLAND  ON)
set(GLFW_BUILD_X11      OFF)
FetchContent_MakeAvailable(glfw)