I am using an external LG display connected to Macbook pro M1 2021 directly via USB-C. Before upgrading to Monterey it worked and after upgrading it stopped working. However, after upgrading to 12.2 it worked initially until first reboot but then stopped working again.
Extremely surprising to see these kind of issues tbh.
Haluba
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Updated to 12.3 and USB worked.
BUT, after first reboot the issue is back again.
It was the same for me when updating to one of the previous versions (12.1 or 12.2).
Absolutely crazy to see this kind of issue not being fixed.