Same.
I have a ThinkPad Thunderbolt 3 Dock Gen 2 with 2x Dell D3218HN displays connected to it's HDMI ports, and a USB2 (well not USB-C) mouse.
I just upgraded the Dock firmware to the latest firmware.
When connected to a Dell laptop both displays work fine.
When connected directly to my MacBook Pro 16" 2021 the displays work fine (one by HDMI the other by USB-C).
But when I connect the Dock to my Mac the mouse works fine, but the displays flicker on for a fraction of a second every 30 seconds or so and remain dark between.
For all the experiments the display resolutions were 1920x1080.
Dave4E71
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