Is this setup possible??
Get a long usb cabke and a long hdmi cable (fibre for bith if you have to) and skip thunderbolt. Desktop usb c doesnt carry ANY video from your gpununless it has a passthrough port and there are no new cards that have that.
Even linus only uses his thunderbolt dock as a fancy usb hub. The display out has also been replaced by a directional dp port cable.
Bonus is its gonna be A TON cheaper just using 2 cables than having to do a fiber optic thunderbolt setup (thats 1000$+ at the minimum). That and honestly the usb + hdmi cable route is basically always the better option
So your list:
1. Yes but its better to do as I said above. It can work if you have the exact right hardware
2.Use displayfusion irs gonna save a lot of headaches
3. Yes thunderbolt or usb cabe would just be a usb hub/port for the system
4. Dpport and hdmi carry audio. Arc is possible but you can just run a audio cable too. Plenty of options here.
5. Better and cheaper to do a usb, hdmi and if needed audio run on their own. Much much cheaper too also not stuck with proprietart tech. Bonus here is too that your pc hardware isnt factored into the compatibility list. All you need is the ports instead of having a specific hardware combi

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