MacBook Air M3 - Black screen after wake from sleep using external monitor via USB-C to DisplayPort cable

I previously used a powered dock, which I connected to my MacBook via it's built-in USB-C cable. My dock broke so I purchased a USB-C to DisplayPort 2.1 VESA certified cable to directly connect my external monitor. Everything detects and works just fine until my MacBook goes to sleep.

After wake from sleep, the laptop screen remains black and shows the mouse pointer in the last position it was in. If I move the mouse, the picture of the pointer remains where it was, the screen stays black and another pointer moves around in response to the mouse. The mouse pointer seems to respond to the context of the content on the laptop that I can't see. The external monitor will show just the wallpaper and not display the apps that were on it prior to sleep. If I close and reopen the monitor it may partially work by displaying apps but the sizing of windows will be incorrect or partially loaded and it still doesn't update the display based on what my inputs.

I have to follow this specific order of steps to get the monitor to resume displaying content correctly:

1. Unplug external monitor cable.
2. Close the laptop lid and reopen. Wait till screen resumes displaying normally.
3. Plug in the external monitor cable.

I never had issues using the hub before and I would think that since the cable I am using is fully VESA compliant with a newer display port standard it should be the cause (newer DisplayPort versions should be backward compatible). I've reset the NVRAM and it hasn't fixed the issue.

I know everyone is going to say to try another cable but cables aren't cheap and I can't guarantee the problem will be resolved by this. It seems like a glitch or a bug that needs to be fixed.