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Were you expecting to be able? The tech specs say "One external display".

Not sure this is fair to the consumer. Apple was advertising usb-c as one port to rule then all. When the device has two of these ports, why should the user expect not to connect two displays?

Especially since this restriction didn’t apply to the previous models that looked exactly the same and are now advertised as less powerful.

It would be natural to not explicitly look for how many displays it can handle.

Back in 2011 you could use a second iMac is a monitor in target display mode, that went away, why should the user expect not to be able to use target display mode for every iMac? Things change unfortunately and the single display restriction of M1 was advertised heavily online and can be a pain point but it's listed online as a spec.

Good point, though I’d argue more people use two screens on a MacBook than an iMac as a screen, since it already provides a computer.

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