System Requirements for Clamshell Mode? First Mac to support it?

I have an old 2012 Retina MacBook Pro 15" running macOS Sonoma that I screen share in and have always used the screen open, thinking that my Mac is too old to support clamshell mode. But is that accurate? Perhaps I am using the term wrongly but I basically want the lid to be closed, the MacBook on power and the ability screenshare in any time locally.

Is this feature merely software thing? Is there a first macOS version that is required or do you also need a certain hardware configuration and do only MacBooks from a certain year and newer support it? I am pretty sure that I have selected the sleep settings to wake on network activity but when I tried it with the screen closed, it worked for a couple of hours but then I no longer saw the machine under "network" on my M3 MacBook Air 15".