Connecting three Studio Displays to an M4 Max Studio Computer

Daisy-chaining 27" Apple Studio Displays is impossible, because those displays do not have daisy-chaining ports. They have a single Thunderbolt input, and three USB-C (USB only) downstream ports. The downstream ports do not carry Thunderbolt or DisplayPort Alt Mode signals and would not be suitable for daisy-chaining.

The question would be whether you could plug two 27" Apple Studio Displays into a Thunderbolt 5 hub/dock that was plugged into one of the M4 Max's Thunderbolt 5 ports, and have everything work properly. The answer there would depend on whether the Mac has support for taking advantage of Thunderbolt 5 – or whether it is still going by "the rules" that apply to Thunderbolt 3 and 4.

<< However, I was told that daisy chaining the displays would also work. >>

I don't thinks so, because each of those 5K displays at 10 bits/color consumes at least about 26 GB/sec bandwidth. Not enough is left over (of your up to 40 GB/sec ThunderBolt pathway) for another 5K display.

At that high resolution, you will need each on its own ThunderBolt cable out of the Mac.

Also, Each Brand-X ThunderBolt cable is limited to 0.5 meters maximum length. Or you can use EXACTLY the pre-Engineered Apple cable that shipped in the box -- a glaring exception to the general rule, "Shipped in the box cables are junk."

The M4 Max Mac Studio has Thunderbolt 5 ports – and those theoretically can carry more video data than either Thunderbolt 3 or Thunderbolt 4 ones. In "Bandwidth Boost" mode, Thunderbolt 5 can dedicate 120 Gbps of total bandwidth to outbound video data, leaving 40 Gbps for other uses.

Intel Newsroom - Intel Introduces Thunderbolt 5 Connectivity Standard

"Thunderbolt 5 will deliver 80 gigabits per second (Gbps) of bi-directional bandwidth, and with Bandwidth Boost it will provide up to 120 Gbps for the best display experience."

Cable Matters – What is Thunderbolt 5? The Future of High-Speed Connectivity

"Thunderbolt 5’s Bandwidth Boost is not just an update—it’s a transformation, elevating connectivity to unprecedented levels. The ability to connect to the latest and future Thunderbolt displays, supporting multiple high-resolution displays such as 4K, 5K, 6K, and up to three 8K displays, further highlights its impressive capabilities."

However, it is not clear whether macOS is able to take advantage of this yet.

<< I'd like to see the Studio Displays add an additional T3 port >>

That is not reasonable as currently executed, regardless of what internal Hardware is connected inside to support it.

You start with a ThunderBolt-3 with 32 GB/s typical, 40 GB/sec maximum bandwidth. Take away 26 GB/sec from that for that ONE 5K display at 10 bits/color. Because it is display data, it will be unrelenting, with so substantial pauses. The bandwidth remaining is far short of what is required to support any ThunderBolt-3 devices.

Thunderbolt-5 Switches at the same speeds as older versions of Thunderbolt. But rather than a baseband signal (One bit per signaling interval) Thunderbolt-5 It uses a modulated signal that provides multiple bits per signaling interval.

You can only get increased speeds when EVERY device (sender AND receiver) is using ThunderBolt-5 modulated signaling.