I've solved this problem (2022-03-15). On my monitor (LG LCD 27 27UN880-B IPS) I've went into settings, and I've lowered the DisplayPortVersion from the default v1.4 to v1.2. As soon as I've lowered the monitor's DisplayPortVersion, my Mac with OS X 12.3 has started recognizing the second display correctly. It seems that the new OS X update has issues with a DisplayPortVersion 1.4 protocol (has faster data rate, faster refresh, and stream compression). Hope this helps.
Danimir
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