External monitor shuts off when Macbook lid is closed

To recreate: Update to Sonoma 14.6.1 (23G93). Connect Macbook to external monitor (Agon AG493UCX). Close the Macbook lid. The external monitor shuts off as well, even though it shouldn’t.

Lock Screen settings

• Start Screen Saver when inactive: For 20 minutes
• Turn display off on battery when inactive: For 1 hour
• Turn display off on power adapter when inactive: For 1 hour
• Require password after screen saver begins: After 1 minute

Battery settings

Low Power Mode: Only on Battery

Prevent automatic sleeping on power adapter when the display is off

• Slightly dim the display on battery: Blue
• Prevent automatic sleeping on power adapter when the display is off: Blue
• Put hard disks to sleep when possible: Never