Macbook Air M1 Sequoia to Optoma UDH35

Hi Guys! So I am, too, a victim of the newest Sequoia update on my Macbook Air M1. My "setup": \- Macbook Air M1 \- uni USB C to HDMI 2.1 Cable \[8K@60Hz,4K@144Hz\] Aluminum Type-C to HDMI Braided Cable \[Thunderbolt 4/3 Compatible\] Support 48Gbps/HDCP2.3/HDR for iPhone 15 Series, MacBook Pro/Air, iPad Pro, S23-1.8M \- Optoma UHD35. Now, when I'm connecting to the HDMI cable, the laptop "sees" Sonoma, can't go into many settings beyond "Optimise for Macbook Air / Optoma"; "Mirror / Stop mirroring"; "Extend screen"; resolution; colour profiles and Refresh Rate can't be edited (the only setting is 60Hz). My projector shows black screen (occassionally giving me 1 second of hope and showing the screen; going back into black after 0.5 sec). This was working perfectly before the Sequoia update, on Sonoma. My work laptop (Macbook Pro M1 Max; Sonoma 13 3.1) can still connect just fine. With Apple Care team we tried remotely tweaking the settings; trying it in Administrator mode; trying it in Safe Mode. I tried reinstalling Sonoma. Nada. Tried the suggested somewhere on the reddit deleting some file in Library/Preferences/ but also didn't work - it pops back up everytime i connect the cable. Engineer is supposed to contact me in 2 days (stupid NYE) but i'm actually going insane. Anyone has any ideas / remedies? Thanks tl/dr: Macbook Air M1 doesn't connect to Optoma projector via HDMI - USB C cable anymore after Sequoia update and i was to throw my laptop out of the window and storm Apple HQ.