Release version of Monterey still has this issue! - come on Apple!!
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I'm having these kinds of issues too on Beta 6. Only on M1 devices, Intel based are working fine. USB-C monitor with built in dock, sometimes works, sometimes works but no power delivery.
If device rebooted with USB-C monitor connected, then it works - but unplug the cable and replace, and back to no power/accessories.
Looking forward to Beta 7.... :)