OK - more info from testing tonight. This is a firmware issue on the graphics adapter. Again, I have a Mac Pro Rack 2019. When I originally experienced this issue in late December, I got no display whatsoever with my previously-working Owens Corning optical Thunderbolt 3 cables to my current LG 5K2K monitor. As a troubleshooting measure, I took out my W5700X module and put the original 580MX back in but had the same problem. That 580MX was installed when I applied the 11.2 update earlier this evening that fixed the problem - full resolution @ 60Hz with the optical cable.
However, when I put the more powerful W5700X module back in the system, it went right back to the same problem - no video via the optical cable. Fortunately, I had backed up to an external Thunderbolt 3 flash drive before this whole mess started. Thinking that the 11.2 update must have applied firmware updates as a part of the process, I booted up my old 10.15.7 OS from December with the W5700X installed (used another cable to get lower res video given that the optical cables didn't work again) and re-applied the 11.2 update. After several PRAM and SMC resets, this all now works.
This doesn't apply to many of you - you don't have the option to switch out graphics cards with MacBook Pros. However, if you're in my situation, make sure you have the graphics card that you desire to permanently use installed when you apply the 11.2 update. The upgrade process updates the firmware on the card and the fix won't work if you do the update with a different card installed.
Crazy night - happy to be at full 5K2K resolution @ 60Hz once again. Very concerned by all this - no way this should have passed Apple QA processes....