Same issue for me with simultaneous use of 2x MB16AC on a MBA M2 15" (tri-screen setup).
One of the monitors works using DisplayPort mode perfectly well, but the other requires a strange combination of dongles to work with displaylink.
The reddit
thread shows the combination that works with two monitors simultaneously. I've tried various USB-C 2.0 cables but none of them work unless I use the adapters.
**Edit** Now I have this error on both screens when not using displaylink, and the screens do not work with displayport anymore (only displaylink). I believe displaylink must trigger something in the display that cannot be changed