Connecting external display using Thunderbolt port from Mac studio to destination device having USB-C type port only and not having Thunderbolt for 4K display expectation?

Yes. Apple often refers to the USB-C ( USB, DisplayPort, Thunderbolt ) ports on newer Macs as Thunderbolt ports. Presumably this is because Thunderbolt 3 and 4 are desirable features to have on a USB-C port.

But that doesn't mean that everything that you plug into one of a Mac's Thunderbolt ports must speak Thunderbolt. A Mac Studio can drive a 4K monitor using USB-C ( DisplayPort ). The computer and monitor will simply negotiate a DisplayPort ALT mode connection rather than a Thunderbolt ALT mode one.

You won't have a lot left over. USB-C 3.2 is rated for 20 G bits/sec

a 4K display uses around 17.28 G bits/sec, by turning around the inbound data lanes and using them momentarily for outbound bursts of data.

Don't try to hang a fast drive off the display as well. Keyboards, pointing devices, card readers, should be no problem.