Solved the issue:
- shut everything down
- unplugged everything
- plugged the non-working LG display (2) directly into the iMac with a USBC/Thunderbolt cable c
- restarted the iMac, when it booted it recognized the display and worked
- unplugged the LG display (2) from the iMac
- powered up the Belkin hub
- Connected thunderbolt cable from iMac to Belkin
- Conencted Startech Displayport dongle and cable to LG display (2) - it worked again
- Connected a USBC/Thunderbolt cable from Belkin hub to LG display (1) - it worked
Now both external display connected to the M1 iMac through the Belkin hub are working again. Don't understand why, but it works again!
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