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An error occurred while saving the commentFlorian commented
Same problem! I had a 4h phone call with apple support because I don't understand why my MacBook Air 2019 works with two HP E243 displays on a Lenovo ThinkPad Dock in closed lid mode. And my MacBook Air 2020 (Intel) don't.
After reinstalling BigSur completely it doesn't work again. My least idea was "there are diverent versions of Display Link Driver at my two MacBook Air".
So I try to deinstall the buggy "DisplayLink Manager Graphics Connectivity 1.2" and install the "oldDisplayLink USB Graphics Software for macOS 5.2.5".
Works perfect on my MacBook Air 2020 now as it seems.
The buggy driver doesn't deactivate the MacBook Display when it is closed. Maybe this will help?
Please display link team test your driver next time much better. I waste 8h of my life to find a solution.