Daily Kernel Panics on MBP 16" with external monitor

Hello!

I know I'm not the first to report this issue, but ever since getting an external monitor (BenQ PD2700U), my 2019 Macbook Pro 16" has been kernel panicking about once or twice a day.

I've heard this issue is not necessarily unique to my monitor but I figured I would post any and all info I have here in hopes to add to the discussion.

1. For each kernel panic, the mac becomes unresponsive for 3 seconds, the fans go into overdrive for 2 seconds and then it restarts.
2. Also for each kernel panic, upon restart the macbook pro's keyboard backlight is nonfunctional and does not show up at all in the system preferences for the keyboard. The only way to bring it back is to reset the SMC.
3. I did have a call with Apple support yesterday and they took me through the basics. I ended up reinstalling Catalina from scratch as advised. This did not sort the issue as I experienced 2 more panics before bed.
4. Interestingly, the MBP kernel panicked last night when the external monitor was not plugged in. BUT what was plugged in was the USB plug that goes into the monitor to power the 4 USB-A ports. This leads me to believe that the issue might be less to do with the displayport and more to do with the display's USB-hub feature. To be fair, the included wire that connects my MBP to the monitor to provide the 4 ports with power was plugged into a USB-C hub. This makes me think that could be the issue (not enough power?). I have since plugged the monitor's USB power wire into an apple USB-C dongle and so far I have not experienced a panic (in 12 hours). I still could experience one. I'll update here if so.

This is a copy paste of one of the most recent kernel panics.

panic(cpu 0 caller 0xfffffff0123f4014): "i2c3::_checkBusStatus Bus is still in a bad state; last write status 00010110 int shadow 00010100 xfer 00000000 fifo 00000000 for device als"@/AppleInternal/BuildRoot/Library/Caches/com.apple.xbs/Sources/AppleS5L8940X/AppleS5L8940X-169.0.1/AppleS5L8940XI2C.cpp:351

Debugger message: panic

Memory ID: 0x6

OS version: 17P6610

macOS version: 19G2021

Kernel version: Darwin Kernel Version 19.6.0: Thu Jun 18 20:30:46 PDT 2020; root:xnu-6153.145.1~1/RELEASE_ARM64_T8010

Kernel UUID: B4EDD42A-0513-3B38-A0EF-ED8AF599F183

iBoot version: iBoot-5540.140.12

secure boot?: YES

x86 EFI Boot State: 0x16

x86 System State: 0x0

x86 Power State: 0x0

x86 Shutdown Cause: 0x7

x86 Previous Power Transitions: 0x70707060400

PCIeUp link state: 0x1611

Paniclog version: 13

Kernel slide:     0x000000000a19c000

Kernel text base: 0xfffffff0111a0000

mach_absolute_time: 0x1d8e1ccf525

Epoch Time:        sec       usec

  Boot    : 0x5f37f933 0x000d9693

  Sleep   : 0x00000000 0x00000000

  Wake    : 0x00000000 0x00000000

  Calendar: 0x5f3943c0 0x000c7223

Panicked task 0xffffffe000607000: 3284 pages, 221 threads: pid 0: kernel_task

Panicked thread: 0xffffffe001580548, backtrace: 0xffffffe0162fb210, tid: 32761

  lr: 0xfffffff011a64860  fp: 0xffffffe0162fb250

  lr: 0xfffffff011a646bc  fp: 0xffffffe0162fb2c0

  lr: 0xfffffff011b7f770  fp: 0xffffffe0162fb370

  lr: 0xfffffff0120315d8  fp: 0xffffffe0162fb380

  lr: 0xfffffff011a64024  fp: 0xffffffe0162fb6f0

  lr: 0xfffffff011a6437c  fp: 0xffffffe0162fb740

  lr: 0xfffffff01289e938  fp: 0xffffffe0162fb760

  lr: 0xfffffff0123f4014  fp: 0xffffffe0162fb7e0

  lr: 0xfffffff0123f3878  fp: 0xffffffe0162fb870

  lr: 0xfffffff0123f3414  fp: 0xffffffe0162fb8a0

  lr: 0xfffffff0123f30b0  fp: 0xffffffe0162fb8e0

  lr: 0xfffffff0120a8d34  fp: 0xffffffe0162fb900

  lr: 0xfffffff0120a8b9c  fp: 0xffffffe0162fb930

  lr: 0xfffffff011fa0f1c  fp: 0xffffffe0162fb9a0

  lr: 0xfffffff0120a9560  fp: 0xffffffe0162fba00

  lr: 0xfffffff0124c25e0  fp: 0xffffffe0162fba20

  lr: 0xfffffff0124c6d90  fp: 0xffffffe0162fbb60

  lr: 0xfffffff0124c1a5c  fp: 0xffffffe0162fbba0

  lr: 0xfffffff011fa4488  fp: 0xffffffe0162fbbd0

  lr: 0xfffffff011aa79e0  fp: 0xffffffe0162fbbf0

  lr: 0xfffffff011aa75e8  fp: 0xffffffe0162fbc90

  lr: 0xfffffff01203c514  fp: 0x0000000000000000

It says "bus is still in a bad state" which is... concerning (as hey I don't fully know know what that means, but bad means bad eh?)

Anyone have any advice?