Hmmm...I thought MX 17.1 was able to handle Kaby Lake Intel graphics like yours, but you're getting the gallium software rendering even for that, when you should see something more like this on mine:
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Graphics: Card-1: Intel UHD Graphics 630 driver: i915 v: kernel
Card-2: NVIDIA GP107M [GeForce GTX 1050 Ti Mobile] driver: N/A
Display: x11 server: X.Org 1.19.2 driver: intel resolution: 1920x1080~60Hz
OpenGL: renderer: Mesa DRI Intel UHD Graphics 630 (Coffeelake 3x8 GT2) v: 4.5 Mesa 18.1.7
I have an eighth-gen instead of seventh, so have to use a newer Mesa. I don't know if you need a newer kernel, Mesa, or firmware-misc-nonfree, but you might try adding those in that order. Stretch-backports has Mesa 18.1.6; I did 18.1.7 for our experimental repo.
Maybe the Bumblebee switching will work if the Intel driver is fully functional, but it will at least improve that side of the graphics.