My M1 Pro drives 4 screens no problem. The trick is that you can only attach two through one Thunderbolt port, so you have to attach the 3rd one via the other port instead of your dock. (The 4th screen is the laptop's built in screen)
I do remember the M1 chips being uniquely capable in this aspect compared to later chips but when I say decent displays I meant 3x 120hz 4k screens with HDR on at least one.
Last year when I was browsing the only recentish Apple silicon capable of driving that was the M3 Ultra.
Keyword is pro. Non-pro chips drive fewer screens unless you use DisplayLink. Which I did at some point, it's a hack but ok for lighter usage.
I've been away from Macs (2015 MBP and an M1 Pro) for a while now, but they used to have a limitation of one screen per port. Apparently driver related as according to my faulty memory a Linux install didn't have the same issue.
Are you using Apple displays or did they fix it?