Hello Fravin,
That's indeed very peculiar.
When idling at 40% in USB-C mode, would you please be able to tell me what is consuming CPU from Task Manager?
Could you also use the last link in my forum signature to upload the ZIP of your log files? Please gather logs when you see the issue of everything lagging in USB-C mode.
The DisplayLink chip in the dock and DisplayLink driver don't see if it's a USB-C or USB-A connection in use: in both cases USB 3 standard is in use. That's why the adapter Dell ships attached to the cable is a passive plug changer only. It does however bypasses a few things in the dock which are USB-C only. This requires more digging.
Kind regards,
Alban
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