External Display only working in Clamshell Mode on M1 Macbook Air

I have been using this Monitor with my Macbook Air M1 for almost 1.5 years, But from last couple of days I can not use the External Monitor with Macbook opened. I can only use the External Display with Clamshell Mode. Or I can just use the Macbook on it's own. Also the ports seems to fine as Macbook is charging from both the ports as well as it is using the same ports when I am using external monitor with clamshell mode.

I have another work Macbook Air M3 and the External Monitor works fine with that Macbook and I am using same cables and dongle to connect the External Monitor to both of my Macbook Airs. 

Currently on macOS Sequoia 15.4, Updated to this OS yesterday only after the issue started.