After updating to macOS 12 Monterey, users began to run into problems when connecting USB-C hubs. According to complaints on Reddit and the Apple support site, the hub is charging, HDMI and USB-C ports work, but other functions using USB-A 3.0 drives, as well as accessories with this interface, are disabled.
There are complaints from users in which, on the contrary, USB-C ports do not work. Interestingly, problems with connecting hubs were still in early versions of macOS 12 Monterey.
Most of the complaints come from Mac users on the M1. There are also statements from users on Intel. Apple Support said that complaints about the problem continue to come in. Hopefully it will be fixed with a patch soon.
A source: MacRumors