I've got exactly the same issue. One screen connected to HDMI, another one to DisplayLink docking station. When I move browser/terminal to DL screen, whatever I type seems to disappear for a moment and then it comes back. supper annoying. It does not happen on HDMI screen (which is exactly of the same type).

I'm on version 1.10. on Mac.

It does not happen on visual studio code, just in chrome and terminal.

Any update on this please?

Also having the same issue.
Macbook Pro (M2)
Apple Magic Keyboard
LG external monitors using Displaylink Manager 1.10

For the last couple of weeks I've been noticing the cursor skipping back then forward when I type. It does register all of my inputs correctly despite the lag, but naturally as I'm looking at the screen when I type it's quite off-putting. I assumed it must be something to do with the keyboard, but when I actually found some time to test things I discovered that it does not happen on the Macbook screen, only on the external monitors. So weird.

Exactly the same annoying issue. Hope it will be fixed on the next release.

Displaylink Manager 1.10.0 (build 117)
MacBook Pro 14-inch 2021 - Sonoma 14.2.1
Apple USB-C Digital AV Multiport Adapter
Dual Display AOC 22v2 1080p 75Hz
Logitech MX 3S mouse, USB receiver (Logi Bolt dongle)
Redragon k530 Pro keyboard, USB receiver (2.4 GHz)

Tried with different devices (wired, bluetooth) or no devices at all, same result.

for me it seems resolved on 1.10.1 (build 93)