I ended up finding one of the Targus docks that did work with the systems. I did troubleshooting with Targus and they are going to replace the docks that failed for me. We have less than a dozen people on these and we had 5 that failed with the same behavior within a few days just before the end of the year.
As much as I refused to believe it, it does appear to be a hardware issue. I used the one working dock in place of three of the ones that failed, and in each case simply switching out the dock and leaving the power adapter and cable connections the same worked in each case. I sent one of the bad ones to Targus and they are will process a replacement within a few weeks. Some of the users are still using the dock as a USB HUB in the meantime, so I'm slowly figuring out the logistics of who gets what when.
During the troubleshooting with Targus, we tried updating the USB HUB, the graphics driver, and the DisplayLink software to 7.5. Nothing worked and they agreed to do the RMA. When I came across a working dock, the three systems I tested it on had different DisplayLink versions and likely different drvier versions from when they were first configured within the last year. Worked on all of them, so it did not appear the software/drivers contributed at all.
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