I'm having no issues running two displays with my MBA M1. The second display does require a DisplayLink adapter though.

I maybe being dumb here - but why can you not plugin a USB-C dock that has dual HDMI output ? I get you cannot dual monitor direct from laptop > screens. I would always use a dock with single cable. e.g https://www.belkin.com/uk/docks-hubs/connect-pro-thunderbolt...

Because that requires DisplayPort MultiStream Transport, which Apple's chipsets for unknown reasons do not support.

This is the real problem right here and why I was ready to upgrade day one. Not interested in the M2 Air now. I'm sure it's all very nice but the only thing missing from my Air that I really wanted was multiple display output.

You can have multiple display support with Display Link. It's not ideal because it consumes CPU, but it's working fine with my M1 MBA. If I had to do it again, I'd likely just purchase a real nice single monitor.

Looked into it but the need to grant screen recording permission really made me uncomfortable.

EDIT: not sure why this was downvoted. All DisplayLink devices need to be granted screen recording permission to work on macOS.

There are some work arounds for that limit on the M1. Depending on your situation that might be an acceptable solution.

Single monitor support that's it? Why is that? Seems like an odd limitation.

Have to justify the Pro. Same in regard to the ram

The regular 13" is also limited to a single external output. I feel burned, because I got one before the 14 and 16 inch models were announced.

with DisplayLink I'm running two external monitors just fine.