Same issue being discussed here as well: https://discussions.apple.com/thread/255518397?sortBy=best
Since Sonoma 14.4 update, if I unplug my usb-c connected monitor (Dell U4320Q) which has a built in hub and then plug back in, the display reconnects but all the usb devices are no longer recognized. Same happens if my Mac goes to sleep. Confirmed that the same cannot be reproduced on windows and on my other Mac that is running latest Ventura. Clearly a bug/regression introduced in Sonoma 14.4 and nothing to do with the health of my hardware. I also tried the suggested workaround, namely playing with different options of "Allow accessories to connect" under Privacy & Security settings, and none helped.
Power cycling the laptop or the monitor does not fix the issue. So far the only way to restore the devices is to disconnect the Mac from the Monitor, then pull the plug out of the monitor so it does a full hard reboot. Once connected back the Mac asks whether I "allow" the new hub to be connected. And then the devices are again recognized but only until the next time my Mac goes to sleep or next time I need to unplug the monitor.
Super annoying and hope apple fixes it soon.