Long story short: Apple broke something to do with DSC starting with Big Sur 11.1 and has not fixed it as of the 11.2 RC released today - the issue still persists. Since DSC is broken, if you have a 4K monitor, you cannot get 144Hz - your best option is doing non-DSC DisplayPort 1.4 to get 4K/120Hz.
That being said, since the "broken" bit came in via a software update, is there a possibility a non-Apple developer could figure out a fix? It seems as if Apple is completely unaware of the problem as I'd imagine it'd be fixed by now if they were. It affects all people running 4K external monitor *except* those on M1 Macs.
I was hopefully today's RC would fix the issue, but alas, it does not.
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