Thank you Grant. Yes, I know the price paid! I tried to keep the initial post brief, but here is the background.
I upgraded to the MacBook Pro 14" 2021 last year and absolutely love it. For a long time I have used a MacBook nomadically and an iMac (27-inch late 2015) in my office, loving the big screen. But the MacBook is so much better than the old iMac, which also cannot now update to Ventura. So time to replace. The current iMac is 24-inch and likely soon due for an upgrade to M2, so I am waiting, and while waiting thinking why have two devices, managing files between them (even with iCloud, Dropbox, etc.). So considering the Studio display with the MacBook.
Yes, I would plug the MacBook into the Studio display using one of the Thunderbolt 4 (USB-C) ports for display connection and power. I assume in that configuration I can close the lid without sleeping.