Hi - on iPadOS16 beta1, we have been experimenting with connecting to external 1080p and 4k monitors using TypeC on latest M1 iPads.
It appears to only display full-screen (non-mirrored) when there is a HID device such as mouse connected. This makes sense as you need to be able to control the screen independently.
However for a touch screen external display (e.g. INNOCN) that supports multi-touch, it does not work. iPadOS (and macOS) do not have any multi-touch drivers.
Is there plans for iPadOS (and indeed eventually macOS) to support external multi-touch screens?