Earlier quoted context omitted.
A submarine avalanche causes waves by a sudden displacement of earth under water. These occur regardless of earthquakes, and rarely result in significant waves: https://en.wikipedia.org/wiki/Turbidity_current
From the link I gave: "A 7.2-magnitude earthquake off the southern coast of Newfoundland in 1929 caused a large underwater landslide, creating a large wave that rushed ashore and killed 28 people on the island, ten Brink said. The waves were up to 26 feet high until some reached narrow inlets, where they grew to 43 feet (13 m), he said."
> An offshore earthquake of magnitude 4.5 or above could cause submarine avalanches and create dangerous tsunamis with waves higher than 26 feet
Turbidity currents occur on the regular without earthquakes and rarely result in substantial waves. They have been observed to happen due to earthquakes, but this is a rare event. The Grand Banks quake is the only known earthquake to have done this, and as you pointed out it was an earthquake with a much larger magnitude.
In the grand scheme of things, turbidity events don't significantly impact the overall risk of tsunamis. The tsunami risk overwhelmingly comes from the earthquakes themselves, not the turbidity events they may trigger.