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closing the lid causes issues with external monitors

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I have a Dell D6000 Universal Docking station and I connected it to my MacBook Pro 13’ 2020 (Four Thunderbolt 3 ports). I connected a monitor on the:

 

HDMI port: 1920x1080
DisplayPort: 1280x1024

 

I downloaded the latest Catalina DisplayLink drivers, the desktop is extended and everything is working just fine. The problem starts when I close the lid of the laptop. I prefer using only the external monitors, so I need it closed.

 

As soon as I close the lid, the 2 external monitors star behaving very strange. Every couple of minutes they lose their signal, and it takes them a couple of minutes to get it back. Also, I can see that the laptop monitor is still shown in the display’s arrangement, even though the lid is closed.

 

1.png.78b070a621c746215066d54c385e2fad.png

 

Of course, this is a problem because I can’t work when my monitors lose their signal every 2 minutes.

 

I know this is not an issue with the Dell D6000, or the external monitors, or their signal cables, or a DisplayLink driver, because when the lid is open, everything is working just fine.

 

This has to be a Catalina setting somewhere affecting the way the laptop behaves with its lid closed.

 

Any idea what could the issue be?
Thanks

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