I think that I figured it out. I did not have the latest version of VDMX5.
I will let you know if this does not work.
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Thanks for this thread ! was struggling with a recently purchased M1 Max 64GB, hadn’t updated its stock OS and I had VDMX display output issues, which updating to Mac OS 12.3.1 seems to have solved ! wonderful was begging to worry an M1 was bought too soon, but thrilled to see 120fps in the main output window now 
Does anyone know if this issue has returned in 12.4? (Anyone running 12.4 and .qtz FX are working fine?). Thanks
Running 12.4 beta at the moment and seems to be working well for me.
12.4 is out of beta, and the current build. Thanks