I'm seeing the exact same thing. The moment the display link drivers gets installed and activated the first time, Cloning is broken - both on DisplayLink and on Miracast. I wasn't even able to get cloning working again by uninstalling the DisplayLink drivers. I performed a full on reset of the PC and still didn't work, then uninstalled and re-installed the display drivers and finally Miracast started working (not sure how the state survived the full refresh but it did).
I repeated the process and installed the display link drivers yet again. Same thing happens: Clone is broken. Here's what happens when clicking apply:
http://twitpic.com/dxnvug/full
I tried reinstalling the Intel Graphics drivers after installing DisplayLink, but that didn't resolve it.