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DisplayLink Manager 1.8 Alpha is adding an alternative way of adding 2560x/3008x missing scaling modes from M1/M2 silicon.
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I am using an M1 MacBook Air with an Asus PA32UC 4K monitor. With DisplayLink Manager 1.4 this issue is still not resolved. I can only select 1080p in the MacOS Big Sur Display settings, even when option-clicking on the scaling option. Using a separate tool I can access higher resolutions but only 4K fills my screen. If I select my preferred resolution of 2560x1800 then I have large black bars around the visible screen area and no option to scale.