You do realize that what it is doing is creating 2 virtual monitors/displays, and then recording those displays, and sending the compressed pixel data over usb right? So yes it is necessary to record screen, and install the driver, the driver is creating virtual displays, and sending that information, compressed, to the DL chip, which decodes and uncompresses that data and sends it to the displays, which is why you are able to do it over USB, I know that sounds overly complicated, and that there are simpler ways of doing it for USB-C, but DisplayLink is a pure USB solution, and USB-A, unlike USB-C, doesn't really have a video output standard, at least not one widely adopted and supported, so it needs to do what it does to work. also it gets around the limited video out lanes issue that exists with some integrated graphics, like on the M1, and standard M2 Macs, allowing you to connect as many monitors as you want, so long as there isn't a hard limit imposed by the OS, hence why there is a 4 virtual display limit, and you have the processing power for it, this is not a normal USB-C to HDMI/DisplayPort adapter, this is a display over USB, solution, allowing for more monitors to be connected, even if the hardware can't support it due to limitations of many forms. Also this allows it to be used over wifi
I got this information from:
https://support.displaylink.com/knowledgebase/articles/1932214-displaylink-manager-app-for-macos-introduction-in
https://www.synaptics.com/products/displaylink-graphics