Solved

Guys, although I wasn't able to find both files as reported in the previous post, I was indeed able to fix the issue. I'm not recommending this solution since it's a nuclear approach, but it worked nonetheless.

It makes total sense to me that should be some file stuck with preferences after attempting to rotate the screen. Something (resolution, window position, wtv, gets recorded in a way after attempting to rotate de DisplayLink controlled display, that makes something in the OS crash. Then you're logged out.

Since I only was able to find 1 of 2 files reported in this topic and was ready to format the machine if fixed, I backed up the complete preferences folder and deleted everything I could (the OS doesn't allow the deletion of only 2 files), and rebooted.

Surprise surprise, the next time I logged in, opened DisplayLink, connected the dongle and it was fixed for good.

Ideally, the next step will be for the DisplayLink team to at least make a script to find those preference files and auto-delete them for all those that encounter this issue go back to a functioning device ASAP, until the driver properly supports rotation on M1 Macs running Big Sur.

Keep up the great work.

System Crashes
 

I also have an M1 Mac with Displaylink 1.2 installed. As soon as I open Displaylink Manager the computer crashes. Then I log in again and since Displaylink Manager is set to open at login I end up in a reboot cycle. So the only solution is to either disconnect the adapter or to uninstall Displaylink Manager. For now I have uninstalled Displaylink Manager.

I have not tried any of the proposed solutions.

I have now tried the proposed solution and removed the plist files. My M1 Mac still crashes upon the launch of DisplayLink Manager.

Any update?

Has anyone found a fix to this?

Solved
 

Had the exact same problem. Solved with the method from this post by jailbreak.

Guys, so even with version 1.3, I can't even try to rotate the monitor? Risky? Still, do we have support? MAKES MONTHS ... = (

Rotation currently requires an Intel-based computer on macOS Big Sur 11.0 and later.
Display rotation is yet available on computers using Apple M1 silicon. This feature is under development.

For anyone having issues with the logouts please make sure that with M1 computers you do not have any of your screens rotated.

We have received reports of crashes and subsequent user logouts on MacOS machines with M1 chips, usually triggered by setting screen rotation.

1. If you are experiencing such issues, please do the following:
2. Unplug the dock and restart your machine to make it operational again.
3. Download fixing script from our website: Reset macOS display persistence.
4. Unpack the archive, so that you have ResetDisplayPrefs v1.20.command in your Downloads folder.
5. Run Terminal and execute these commands to run the script:
   
   HTML Code:

   ---

   cd ~/Downloads
chmod +x ResetDisplayPrefs\ v1.20.command
sudo ./ResetDisplayPrefs\ v1.20.command

   ---

6. The script has to be run with administrator privileges, this is required to forcefully delete defective system settings. Type in your password and press enter.
7. The script will display list of display-related settings files that will be deleted and will ask for confirmation before proceeding.
8. After confirmation the script will delete those files, forcing MacOS to recreate them from scratch.
9. After the script finishes it will ask you to reboot your machine. You can plug in your dock after reboot and the issue should be resolved.

Best regards,
Katarzyna

The post above mentions a script to download, however it does not include a download link.

I am aware of a link to download version 1.10 of the Reset Display Persistence script --> https://www.displaylink.com/downloads/file?d=145

However the instructions from DisplayLink mention version 1.20. Is there an updated link available to the version DisplayLink mentions?

Thank you for pointing that out, I corrected the post and added the link.