The Thunderbolt 4 Docking Station with DisplayLink supports up to four external displays at once, not five:

• Up to two displays through the Thunderbolt 4 downstream ports, using USB-C to USB-C, USB-C to HDMI, or USB-C to DisplayPort. These reach up to 8K at 30Hz on Windows and up to 6K at 60Hz on Mac.
• Up to two displays through the two HDMI 2.0 ports at 4K and 60Hz, which require the DisplayLink software.

The HDMI ports are HDMI 2.0 (4K at 60Hz) because they run through DisplayLink, which caps the resolution at 4K.

Apple M1 and M2 MacBooks: these normally support only one external display, but the dock with DisplayLink lets you add two displays over HDMI, for a total of three.

2024 M3 MacBook Air: you have two options. Use DisplayLink Manager to run two 4K at 60Hz displays on the HDMI ports plus a third display up to 6K at 60Hz on a Thunderbolt 4 port. Or, with the laptop lid closed in clamshell mode and a keyboard and mouse connected, run up to two displays on the Thunderbolt 4 ports.