I have the similar issue but become more serious recently.
I've owned XDR display under 2 years now and I have been using it as extended monitor with my 2019 MBP and have been satisfied without issue until last week. The thunderbolt usb-c connectivity to my MBP start intermittently dropping (charging/discharging alternatively) and the display cannot be turned on successfully.
I've tried numerous attempts and troubleshooting myself, still cannot resolve the issue.
Here are the attempts.
1. Replaced thunderbolt usb-c cable, issue still reproducible .
2. Connected to other MBPs (M1, 2019), issue still reproducible.
3. Can connect to iPad, iMac successfully with display on, no issue observed.
4. Reset MBP SMC, issue still reproducible.
5. unplug power cord and wait 30 secs, issue still reproducible.
6. Tried different power outlet, issue still reproducible.
7. Checked display firmware and thunderbolt firmware, all looks fine and up to date .
Updated 08/04/2022
I bring my monitor to Apple retail store Genius bar for them to look into it. I end up very disappointed, because they say they are not able to troubleshoot the issue due to not much use cases for them to start with. Instead, they quote me out-of-warranty replacement $2499, and I rejected and walked away.
In the store, I tried to reproduce the issue with the apple person, he can connect to MBA without issue and I also tried my MBP M1, and both can turn on without issue. Now I'm really disappointed, frustrated and clueless about the issue. What is going on with my display !!
Is this hardware issue, firmware issue or software issue, im out of clue. Apple please help