Hey all! I found a temporary fix that has been working for me for the past bit.
In the Zoom desktop app, go to Settings -> Share Screen -> Advanced (at bottom) -> Screen Capture Mode -> Select
"Advanced capture with window filtering".
This switches Zoom to use the native screen sharing built into recent versions of Sonoma rather than the Zoom-specific screen sharing built into the app. It's a bit of a different experience but it works!
I also enabled ac System Picker here, but the problem seemed fixed before I did that just changing to "Advanced capture with Window filtering"
YMMV
Here is a Zoom forum mentioning this solution as well.
https://community.zoom.com/t5/Meetin...cOS/m-p/172288
Looking forward to a better fix from DisplayLink, but at least this is a not-too-annoying bandaid.