M1 Macbook Pro 13 inch and Xiaomi 34 inch monitor

M1 Macbook Pro 13 inch
Xiaomi 34 inch curved monitor

Im connecting to my monitor using a Lenova Thinkpad Thunderbolt 3 dock. MBP1 (TB3) <-> Dock (TB3) & Dock (DP) <-> Monitor (DP).

I prefer to use my MacBook Pro in clamshell/close lid mode. After working fine for 3 weeks, the past couple of days the monitor only has black screen when I close the lid. Monitor works fine when I have the Macbook lid open. I've opened notes right before I closed the lid and tried typing on my bluetooth keyboard and when i open the lid again i can see that what i typed does appear so I can confirm that the Macbook did not go to sleep.

I have not idea why clamshell mode suddenly stopped working after 3 weeks but would be great if someone who experienced the same issue let me know how to fix this? Is this an issue with Xiaomi monitor or the M1 Macbook pro?

Thanks for your help in advance.

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