There is no separate setting for allowing external devices to connect to an Intel Mac unless you are logged into a managed macOS user account.
Have you tried just rebooting the laptop? A simple reboot can fix a lot of issues and should always be one of the early troubleshooting steps.
Make sure to disconnect all external devices in case one of them is causing a problem.
Connect just a single device directly to the laptop to see if it works. Make sure to check the Apple System Profiler to see whether the physical device is actually seen under its relevant section (USB, Thunderbolt). If the physical device is not shown, then you have some sort of hardware problem. It could be the port on the laptop, or the USB-C cable, or the external device itself. Try using the other USB-C port and try a different USB-C cable and adapter.
FYI, whenever trying another device & checking the System Profiler, you will need to trigger a refresh in the System Profiler so it rescans the system to provide updated details for the newly connected device. There is a "Refresh" option on one of the System Profiler's menus, or you can just press Command + R within the System Profiler app to trigger the refresh. The System Profiler can be accessed by Option-clicking the Apple menu and selecting the top item.
Try booting into Safe Mode which prevents third party software from launching automatically during boot & login (may also disable some macOS features as well). If the device works or is at least seen while booted into Safe Mode, then it means you most likely have an issue with some third party software that is interfering with the normal operation of macOS. Usual culprits are anti-virus apps, cleaning/optimizer apps, and third party security software.....none of which are needed on a Mac, so uninstall them by following the developer's instructions.
You can also try an SMC Reset (procedure has changed for the T2 Macs) and PRAM Reset (hold the PRAM Reset for at least two chimes if possible). It is doubtful either of these resets will make a difference, but it never hurts to try.
If none of this helps and no external devices can connect, then it means you most likely have a hardware issue with the laptop. Either the I/O Board (aka USB-C ports are damaged, usually from liquid in my experience...I have never seen one just fail), or the Logic Board is bad.