I am hoping the limit is just a MacOS thing, like how MST1.2(?) was supported on my old MBA(2015) hardware but not available on MacOS. I could Daisy chain DisplayLink monitors on Linux, but MacOS wouldn’t let me, and I was limited to a single monitor.
I use Asahi Linux on M2 now, and the USBC display support isn’t done yet, but I am hoping it would be better than MacOS.
Unfortunately it isn't. There are only two display controllers in the M1/2/3 and that can't be worked around in software. MST won't work in Asahi Linux because it's not present in the hardware. It worked on x86 Macs because the GPU supported it.
I use Asahi Linux on M2 now, and the USBC display support isn’t done yet, but I am hoping it would be better than MacOS.