About 1 times out of 4, USB devices don’t work when docking my M1 Macbook Air. Unplugging the USB-C cable and plugging back in again once almost always fixes the issue. When USB devices aren’t working, displays connected to the dock (both USB-alt and DisplayLink) do work and the laptop charges.
The dock is 5 months old but this has happened since new. Using all original Plugable power and USB-C cables.