The passport you arrive in Thailand with is the one you will use when you go somewhere that your passport is required. Such as immigration. You cannot use the other passport that does not have an entry stamp and
The International Drivers License is not really a license to drive at all. It is accepted in participating countries and is meant for temporary use only along with the license from your country. If you are planning to be in a country for a long period of time then you are required to get a driving license from that country. The worst case is you are involve in an accident possibly people are fatally injured and you do not have a driving license from that country. Your insurance company will refuse to pay any claims either repairs or medical expenses. If the accident is your fault the other parties will be taking you to court for damages and medical cost. With this in mind go get a driving license from the country you are living. In Thailand the process is easy if you original driving license is in English The previous comment is although true is not very good advice and irresponsible.
Having a non O retirement visa does not give you residency status. It just gives you the right to stay in Thailand for one year. For a foreigner to get per permanent residency status it is very difficult.
If that is what immigration wants do it. Or get a visa agent to do for you. In Pattaya the office accepts driver’s license in English. Only if license is not in English you have to get translated. Be glad you don’t have to get the translation authenticated by your embassy. In Pattaya the embassy will only accept translations from a translation office which they have approved.
When I renewed my Belgium passport in Thailand 8 months ago the Belgium embassy returned my old passport and gave me a letter explaining why they issued a new passport to give to Thai immigration. Take your old and new passports and the letter to immigration and they will transfer all the information necessary for your retirement visa
I renewed my Belgium passport in Bangkok. The embassy gave me a letter to give to Thai immigration explaining my passport was renewed. Upon receiving my new passport I went to immigration with my old and new passport and the letter Thai immigration transferred everything necessary to my new passport