MacBook Pro 16,2 and LG 27UK850 USB failure

I just started using the MacBook Pro 16,2 (which came with MacOS 10.15.5) over USB-C with my LG 27UK850-w display in closed-display mode with a USB keyboard and mouse plugged into the back of the display. After a certain amount of time controlling the computer with the external keyboard and mouse in closed-display mode, the keyboard and mouse suddenly stop working and all USB connectivity to the computer is disabled. As far as I can tell, this is not triggered by any other devices plugged into the computer (I've tested) and the amount of time to the failure varies. The video remains operational. After unplugging the computer from the display, the macbook takes an eternity to reconfigure the video output, and the USB connectivity still doesn't work. So far, I've only been able to fix it with a reboot.

Things I've tried:

• Sending the computer to sleep and waking back up
• Rebooting the display
• Removing all third-party kernel extensions
• Looking at system logs (no errors from what I looked at)
• Disabling power nap
• Using included MacBook power cable instead of the built in display power

Any suggestions? I would really appreciate any help here.