Many USB-C docks use DisplayLink to create a virtual graphics card over USB, it is implemented as software that renders using your computers/laptops graphics card that then sends the output over USB to the DisplayLink controller.
Thunderbolt docks (and some USB-C docks) instead will use Alternate Mode to pass-through the DisplayPort directly from the computer/laptop to the attached monitor. There is no additional graphics card or PCIe device involved in the matter, and no virtual graphics rendering that is sending frames across USB.
DisplayLink is not great, especially on macOS, even on Windows it would cause random slow downs and in general when using it with multiple monitors it would cause random tearing and other issues. It was fine for spreadsheets and the like, but for video it broke down quickly.
Whereas alternate mode just passes through your graphics card output, so there is none of that, and instead you get the full rendering power.