The single external display driver can drive more than one display at resolutions at 4k or lower. You can daisychain two 4k monitors on a Mac that has only one external display driver when you use the Displaylink adapter (it’s a driver). It somehow internally reuses the same display output for both displays.
The USB-C can power one 6k or 2 4k monitors.
The HDMI port on M2 Pro and newer can power one 8k.