Update:
Not sure if this helps anyone -- Daniel from support got back and recommended these steps but didn't say if they actually solve the problem or if they're just a workaround. I did them and it has cleared up the issue FOR NOW.
1. download the DisplayLink Support Tool available here
3. log into your computer.
4. Run the DisplayLink Support Tool.
5. In top menu bar, click on Advanced and select Reset Screen Layout:
6. If needed, go to Mac settings and reconfigure your display layout
Daniel also created an internal complaint for the problem so DisplayLink techs can try to solve it asap.
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