The Thunderbolt 4 Multi-Display Docking Station will resolve the single-display limitation on Apple M1/M2-based models and should allow users to connect two additional displays via HDMI along with the DisplayLink software, which would be a total of three displays for M1/M2-based chipsets.

Just so you know, the new M3 MacBook Air supports up to two displays at 4K@60Hz when in Clamshell Mode, which will allow a total of four external displays.