Screen mirroring suddenly the only way to recognize 2 monitors - stuck!

In MacOS 15.5 abruptly, screen mirroring is almost stuck in the on position on my Mac mini M2. For years now I've been using 2 different 27" monitors with no issue. I also use a KVM switch.

I'm attaching Images here.

When I click on the drop down, nothing appears.

I first noticed this issue when one of my monitors was displaying this message, "Choose to Mirror from the display (icons of 2 monitors) menu."

Now the only way I can use this second monitor is if I click "Choose Content" and choose to extend the display. And I have to show all resolutions to show 1920 x 1080.

The 2 monitors near the arrange button used to show the models of both monitors, there never was an issue picking it up but now there is.

I tried unplugging cables, power, rebooted, etc., no luck.

It now seems there's no native way for me to use both my monitors without using mirroring. The purple around the 2 displays in the taskbar seems to persistently be on.

Does anyone have any suggestions?

Thanks.