Apple Watch no longer works at login

[OtterCreek]

When I "wake up" my computer, I get a message from DisplayLink saying that AppleWatch cannot wake up my computer "while my screen is being observed." This message is new. For about a year, the message never popped up.

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Using DisplayLink with two screens with
Apple M4
OS Tahoe 26.5.1 (25F80)

[Szymon]

Hello,

This is unexpected. Would you follow this FAQ https://support.displaylink.com/knowledgebase/articles/755301-how-to-report-macos-issues-to-displaylink
and submit a support request?

Thanks,
Szymon