M3 MacBook Air's multi-display support is coming to the M3 MacBook Pro via Software Update

This upcoming update will finally let users close their MacBook and still have two displays running at the same time. However, when you open the lid, one of the two displays will shut off.

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https://www.macworld.com/article/2254933/m3-macbook-pro-update-run-multiple-displays-with-lid-closed.html