I do experience random MacBook Air M2 freezes when it is connected to connected via USB-C with a DELL U3421WE monitor. To be clear is not a Kernel Panic. The system becomes randomly unresponsive. It’s happening while using MS Teams, Outlook or any application. When I unplug the USB-C cable macOS is working normally. Also, sometimes the system randomly lags for 5-10 seconds or the macOS login window appears. The console shows windowserver crashes. The DELL U3421WE display is connected via Ethernet, 2x USB cables for keyboard/mouse. I replaced all cables to no avail.

Is this a known issue? What can I do?

Latest DELL Firmware: M2B107
macOS Montery 12.7.5