...unless you use DisplayLink as the OP is doing.The M1 MacBook Air can connect to only *one* external display.
I've used a DisplayLink dock with a couple of computer and the quality is pretty good (even for things like video editing). However, I did find it quite finnicky with reliability - sometimes monitors wouldn't wake-up, or rescale, or reposition windows (swapping desktops). In short, it's not fool-proof and is not the best solution if you have other options. Unfortunately, the 2020 M1 MBA and MBP don't have any other options for multiple displays.