Just to add to Szymon's answer: this is expected behaviour rather than a fault
. The M1 chip only drives one external display on its own, and the Dodocool dock passes video straight through to the Mac's GPU rather than using DisplayLink, so both screens end up competing for that single output. To run both displays at once you'll need a dock or adapter that actually contains a DisplayLink chip, along with the DisplayLink Manager app installed. That way the second screen is handled by DisplayLink instead of the M1's GPU.