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Same thing happens on my (Macbook Pro 13-inch, Intel i5, 2020). It's an intermittent thing. My typical resolution is to go to Settings->Displays Preset and change from Apple Display to other mode then back. That resets the low res issue.
 
I know it’s an old thread but I can report that I have the same problem - 2020 Intel Mac mini, ASD with included cable, same problem with wake from sleep. Unplug / replug the cable or reboot temporarily fixes it. ASD is on the latest firmware and Mac is on latest version of Ventura. Never had this problem with either of the Ultrafine displays.

At least I’m not the only one?

I suppose there’s nothing to do but send a bug report to Apple.
 
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I have this issue on a Mac Studio M1 Ultra, so this is not an Intel-only issue.
Restarting fixes it. Reaseating the plugs fixes it. Sometimes, going back to sleep and waking (after waiting) can fix it. Clicking (hold option) "Detect Displays" in the Displays Preferences Pane does not do anything.

Seems like an OS issue. (Up to date Monterey here)
 
Out of curiosity: Does rotating the display in System Preferences > Displays (90º then back, for example) fix the resolution?
 
Out of curiosity: Does rotating the display in System Preferences > Displays (90º then back, for example) fix the resolution?

No.

But switching to Apple Silicon does "fix" it. Replaced the 2020 Mini with a 2023 and no issues at all with ASD, including Mac sleep/wake.
 
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I have this problem with my 2023 M2 Pro Mac Mini and an old 27" Cinema Display (the mini displayport version, not the thunderbolt one). I'm using a USB-C to mini DisplayPort adapter. So it's interesting you get get the same problem with an either Intel or Apple Silicon and a thunderbolt Studio Display or a DisplayPort Cinema Display. Sounds like Apple has a pretty broad software problem.
 
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Still an issue here and changing cables doesn't help. Apple just shrugs but I've seen others here get replacement monitors and still have the same issue. Sonoma 14.1 still doesn't fix it. Known issue with Intel MBP they aren't acknowledging?
 
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No.

But switching to Apple Silicon does "fix" it. Replaced the 2020 Mini with a 2023 and no issues at all with ASD, including Mac sleep/wake.

Curious if you've encountered this issue yet on your 2023 Mac, since your "fix" has not been the case for many others.

I still have this issue with unpredictable regularity on an M1 Mac Studio with 2 x 27" Cinema Displays (DisplayPort) connected via USB-C adapters. Often only one display will wake, and with a ridiculously low 4:3 resolution. I have to unplug the displays and reconnect to correct them.

Notably, I never had any issues with the same displays connected to a 2019 Intel MacBook Pro (whether direct or via Thunderbolt/USB-C hub).
 
Same thing happens on my (Macbook Pro 13-inch, Intel i5, 2020). It's an intermittent thing. My typical resolution is to go to Settings->Displays Preset and change from Apple Display to other mode then back. That resets the low res issue.
Cool, thanks for this tip. It worked for me instead of plugging the cable in and out.
I have this bug with my work MacBook (Intel) as well.
 
I'm experiencing the same issue with my 16-inch MacBook Pro M1 Pro (14.3.1) connected to a Samsung ViewFinity S9 5K monitor via Thunderbolt 4. I should note that I'm using a Satechi TB4 dock. I only noticed the issue recently and it's been happening more often over the past few days. Toggling HDR seems to get rid of it.

This is bizarre.
 
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