macOS Ventura on Apple Silicon MacBooks requires user approval to allow USB and Thunderbolt communication with the host before it can send data through wired USB-C port. Otherwise, device can be used as charger if power delivery technology is present.
By default this protection will require the user to grant access every-time new USB/Thunderbolt device will be connected. When Displaylink docking station will be plugged in please choose Allow from the notification options.
DisplayLink Manager 1.8.0 App notifies user with a static message window about necessity to allow data flow through USB-C port.
If you don't want to allow known accessories every-time DisplayLink docking station or other USB/Thunderbolt device is plugged, please choose from System Settings -> Security & Privacy -> Security -> Allow accessories to connect -> Ask for New Accessories option.