Issue Connecting 2 External Displays to Macbook Pro 14" M1 Max (currently recognizing both as 1)

How are you connecting the displays to the Dock? Dell says it must be done EXACTLY this way:

Summary: A guide for providing guidance on using an Apple USB-C host (example: MacBook Pro) with the Dell Thunderbolt Dock WD19TB and explaining the limitations or issues one might encounter when using them together.

https://www.dell.com/support/kbdoc/en-us/000124312/dell-thunderbolt-dock-wd19tb-and-apple-usb-c-hosts

The Mac can CAN handle multiple displays through a genuine ThunderBolt cable, provided most of the traffic is outbound (toward the displays). To do this trick, it 'turns around' the inbound lanes, effectively doubling the possible bandwidth available.

A DisplayPort cable does not have an additional set of conductors, and is getting close to saturated at about 4K Hi-Color display. So the idea that you are going to cram two full displays into that one DisplayPort cable, is ... something Apple decided was not worth the Engineering time and effort. Users would Immediately overwhelm the capability of a DisplayPort cable, and then proceed to bash Apple about their poor implementation.

You have that completely right.