Thank you. There was one very helpful person here who helped me get it fixed. You see the issue might have been the pram. You need to shut down your Mac for a longer period of time ( at least 5 minutes as I read) and then it resets it.I wish you and others would stop all this noise about Apple's specs. It doesn't contribute anything and it's irrelevant to the OP's problem
That has seemed to fix it and everything seems to be working normally again.
I can connect several displays and use all of the USB devices.
I did that as well. My issue is resolved now. I hope it won't persists any longer and my Mac the way I'd like to for awhile at least.It looks like as of right now, you need to install a beta version of the DisplayLink driver package to have support for Monterey at all, and I wouldn't be surprised if there are issues anyways.
Thank you so much for being such an amazing person and so understanding. You are really nice and such an amazing person. I wish you all the best!
I'll copy paste what you've written to my notes as it is one of the things I could try in the future if I'll have this issue again. ( I hope I won't, but better safe than sorry).