Same here MBP M1 with a USB-C and a Benq GW27 just upgraded to Monterey (12.0.1).
If I just try to connect and disconnect a couple of times in the end it works.
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Is unbelievable this hasn't been solved yet. How they could release it like this?
Solved just buying the $79 USB-c to HDMI apple's adaptor... 😡