None of the work arounds listed worked for me and I require multiple displays for work. I corrected this issue with approximately $300 worth of new supplies from my local staples to include;
New apple brand thunderbolt cable (a different brand C to USB dongle does not work) $90.00
New HD monitor (lowest priced 24 inch HD with HDMI capability) $130.00
New 4K short HDMI cable (I did read in a previous thread the short cord made a difference for one user) $20.00
You may say this doesn't add up to $300 but I must take into account the four previous trips to the store for the new high resolution VGA adaptor ($50.00), dongle that didn't work ($40.00) and high speed HDMI cable that didn't work ($16.00). I will try to take back the dongle.
The good news is, it works now. Expensive little update. Thanks Apple