This is it in a nutshell! Apple needs to give us a little more control.Apple has never released a monitor featuring HDMI input. The LG Ultrafine monitors meant for Mac use do not have HDMI. Neither does the XDR or older Cinema Displays.
All monitors with HDMI input list TV like mode support in their EDID info.
MacOS then reads the EDID monitor info and outputs a signal suitable for a TV.
Often YPbPr/YCbCr output from macOS is in a limited dynamic range (16-235) meant for a TV. This will cause an image lacking in contrast and gradient banding on most standard monitors that are expecting a full dynamic range (0-255).
The automatic EDID handshake process within macOS that sends a TV like signal to most non-Apple monitors highlights a lack of third party display support or concern by Apple.
Ideally macOS needs control over RGB/YUV colour format output and dynamic range output. It’s important that the dynamic range set in the OS and monitor matches to avoid display issues.
Using DVI will provide an RGB signal, even if the monitor has HDMI input. But that is only suitable for older monitors.