Hi
I think the product you have is the ASUS MB16AC monitor. It looks like the monitor is trying to use Alt mode from your PC, rather than switching to USB to enable DisplayLink to work. As you don't seem to have alt mode, you get the error message.
I'm not sure how this monitor switches between alt mode and USB to decide on the type of connection to use, as this is done outside of DisplayLink. You could force this to use USB by connecting it to a USB A port or through a USB C to A adapter, eg something like this:
Wim