This issue got much worse after I upgraded to 12.3.1 on my MBA M1. I have a Belkin Thunderbolt 3 Pro Dock, even though it was fiddly to get USB working sometimes and the monitor I used to manage after reconnecting a cable here and there, now I simply don't get anything from the dock except for power. SD card reader isn't available, none of the USB devices I have connected are detected (my studio mixer, MIDI interface, etc.), nor my external display works through the dock, no amount of restarts, shut downs and ordering of when to connect what has helped, it's been rendered completely useless.

MacBook Air (13-inch 2020) M1, running Monterey 12.3.1 and a Belkin Thunderbolt 3 Pro Dock. The issue got much worse with 12.3.1, my dock is not detected at all, no USB ports work and neither does the SD card reader. USB-C connection to my Dell U3419W was already very fidgety before but now it's not working as well. What a mess.