Created an account to share my experience and hopefully help others, as there are details missing from the above posts that were required to get this working. I will be as specific as possible.
Specs
MacBook Pro M1 Max 14"
macOS 12.3.1
LG 40WP95C-W (40" 5K2K)
SwitchResX 4.11.3
SwitchResX Helper Tool 4.12.0
SwitchResX Daemon 4.12.0
Steps
- Connect LG to MBP directly via Thunderbolt 4 cable.
- Set DisplayPort 1.4 over Thunderbolt 4 cable (set via monitor OSD).
- Install SwitchResX. I installed "for all users", but not sure if this is required.
- Purchase the license. When using the 10-day free trial, my "Custom Resolutions" would show "Not Installed" as the "Status" post-reboot. I tried re-installing, full shutdown, etc. Nothing worked except purchasing the license.
- Click "Install helper tool" on the "About SwitchResX" tab.
- Click "Start Daemon" on the "About SwitchResX" tab and "Launch SwitchResX Daemon automatically after login". Not sure if this is required.
- Create a custom resolution of 7680x3240 (aka 3840x1620 HiDPI).
- Restart (disabling SIP was not necessary)
- If the custom resolution shows "Not activ...-invalid?", open "Displays" in the setting menu and make sure you click on "Scaled" instead of "Default". Without restarting, I immediately saw the status switch to "Active". If you hover over the second highest "Scaled" resolution, the tool-tip should confirm the UI resolution as "3840 x 1620". Not sure why this was required, but it definitely worked in my case.
- You should see this row selected on the SwitchResX "Current Resolutions" tab: "3840 x 1620, 72 Hz, HiDPI=yes, 21:9, Scaled=yes, Active=Enabled".
Thanks to everyone for figuring this out. It's ridiculous that these steps are necessary to make $1K+ monitors usable.
FWIW Apple has also butchered the default scaled resolutions on my Pro Display XDR since macOS 12.2, so this isn't just a 3rd party monitor issue.