This is now fixed for intel gpu based machines.
XServer issue: https://gitlab.freedesktop.org/xorg/xserver/-/issues/1183
Merge request that has fixed that on Xorg Xserver 1.20 branch 
(server-1.20-branch):
https://gitlab.freedesktop.org/xorg/xserver/-/merge_requests/686
Please incorporate that fix to Ubuntu 1.20

To sum up fix is solving extreamly slow refresh rate(1FPS) when laptop lid is 
closed or DisplayLink display is the only one. This fixes laptops with intel 
cpu. 
For amd,nvidia gpus fix is not ready yet.

** Bug watch added: gitlab.freedesktop.org/xorg/xserver/-/issues #1183
   https://gitlab.freedesktop.org/xorg/xserver/-/issues/1183

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https://bugs.launchpad.net/bugs/1875015

Title:
  Ubuntu 20.04 and Displaylink is extremely slow

Status in X.Org X server:
  Unknown
Status in xorg-server package in Ubuntu:
  Confirmed

Bug description:
  Using ubuntu 20.04 on displaylink docking with external monitor is
  totally slow, unusable. The GUI responds very slow, if you click, the
  command of the click goes on after about 3 seconds... if you type, all
  the letters are with the same lag, so it is totally unusable.

  Was using displaylink without any problem on 19.10 until yesterday, when I 
upgraded to 20.04. 
  It is terrific.

  If i plug out the usb for the displaylink docking station, than the
  speed is back, and the system is ok, if I connect it to the docking
  station again, everything extremely slow again.

  Please investigate this asap, as it is unusable on displaylink docking
  stations.

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