My understanding is that your average thunderbolt 3 equipment, when running in thunderbolt mode, did not directly pass through any USB traffic. Instead a dock with USB 2 or 3 ports had to contain a USB controller that connects back over PCIe. This was very common, lots of docks have them.
Here's a good breakdown: https://www.reddit.com/r/UsbCHardware/comments/mjz2pu/usb4_a...
"Titan Ridge, however, would disconnect the USB 2.0 and USB 3.1 hubs immediately upon entry into TBT3 mode."
"USB4 (and Thunderbolt 4) don't do this for the classic USB 1.1/2.0 wires of D+ and D-. When a hub is operating in advanced USB4 mode, classic USB 1.1/2.0 signals still ride through a normal USB 2.0 hub"
"disabling PCIe also means disabling the way that all Thunderbolt 3 docks get to USB 1.1/2.0/3.2 devices at all"