First, please carefully review the Technical Specifications and see if your machine actually supports 2 external displays. The Tech Specs for a 2020 27" iMac are:
Video Support and Camera
- 1080p FaceTime HD camera
- Simultaneously supports full native resolution on the built-in display at 1 billion colors and:
- One 6016-by-3384 (6K) external display at 60Hz with support for 1 billion colors, or
- Two 6016-by-3384 (6K) external displays at 60Hz with support for 1 billion colors (requires AMD Radeon Pro 5700 or AMD Radeon Pro 5700 XT), or
- One 5120‑by‑2880 (5K) external display at 60Hz with support for 1 billion colors, or
- Two 3840-by-2160 (4K UHD) external displays at 60Hz with support for 1 billion colors, or
- Two 4096‑by‑2304 (4K) external displays at 60Hz with support for millions of colors
You must be very specific when asking a question, we have no idea what configuration you bought so we cannot answer your question until you tell us what you own and which external displays and their specs you are attempting to connect. Also, I think you may benefit by speaking directly to AppleCare. You can find their phone number by clicking AppleCare contact Information