Thanks for posting the fix and the detailed follow-up, jpliu. I ran into the exact same problem after updating Zoom, and disabling "Prevent screen capture of meeting content" in my Personal Room settings resolved the masking for me too.
That said, I completely agree with your point that tying this behavior to a DisplayLink connection doesn't make sense. Having a second screen attached via DisplayLink isn't the same as screen recording, so greying out the app window seems like the wrong trigger. Hopefully Zoom revisits how they detect capture rather than treating every DisplayLink display as a recording device. Appreciate you flagging it with them.
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