External displays plus Mac screen (total 3) are not displaying correctly when I connect to my m1 max using vnc or screen share from another Mac, linux or windows computers

I have a 2015 MacBook Pro 15 inch with max specs and Radeon graphics. For years I have been connecting 2 external displays to it. Most recently I have a dell s3422dwg which displays at 3440x1440 and a dell s2721dgf which displays at 2560x1440. They were previously connected using a minidisplayport to DisplayPort cables or minidisplayport to hdmi cable. Both worked fine. I managed to get the max resolution.

When I’m out and I need to do some work from my iPhone, I connect through a vnc app on my phone or through a vnc app from my linux, windows or another Mac and it works perfectly. I can see the 3 screens and move the mouse around. All the screens were distinct and seamless on my old Mac. I could control them perfectly remotely.

Fast forward to now,

I just got an m1 max 16 inch with 64 gb ram. I was reading that it can support 4 external displays no problem so I figured mine would be no issue. I connected to my monitors using usb c (thunderbolt 4) to displayport cables. I checked the cable specs, they support up to 8k @ 60hz. They definitely have the bandwidth, The resolution is correct on the screen, the refresh rates are maxed out and I also get HDR as per the monitor specs.

However, the issue is when I connect to the laptop using a vnc clients, It is supposed to look like https://imgur.com/a/3AG0YOQ (expected.jpeg). But what I get is this, https://imgur.com/a/KJXOzkT (actualvnc.png).

i have only provided a screenshot from vnc viewer on iOS, however the display is exactly the same in tigervnc on windows and apples built in screen sharing app on my other 2015 macbook.

As you can see with the m1 max the screens are overlapping for some reason on the vnc client. I tried a few clients on my iOS, on my windows pc, my Linux pc and even from my old macbook 2015. I still keep seeing the overlap.

I don't know if other people have noticed this or if I'm the only one facing this problem. Is it a software or hardware issue? Is it normal expected behaviour when using multiple screens ? I really need a fix for this because this is my bread and butter.

I contacted tech support, they asked me to unplug and replug, restart, go into safe mode etc. it worked for a while but after a few reconnects it went back to overlapping.