You can try switching renderer in Retroarch, not sure that'll change anything if it's an XWayland issue but just in case
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I tried steam link for several games in last weeks and it seems that black screen issue exists in quite some of them. My case is Nvidia on Wayland and it seems to me that could be a culprit in my case. If it's the case for you, too - try xorg first.
Sorry, can't help you, but interested in solution, too.
I'd guess retro arch is running as a Wayland client. Try to force it to use Xorg / XWayland or read this https://github.com/ValveSoftware/steam-for-linux/issues/6148