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My M1 Pro drives 4 screens no problem. The trick is that you can only attach two through one Thunderbolt port, so you have to attach the 3rd one via the other port instead of your dock. (The 4th screen is the laptop's built in screen)
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I've been away from Macs (2015 MBP and an M1 Pro) for a while now, but they used to have a limitation of one screen per port. Apparently driver related as according to my faulty memory a Linux install didn't have the same issue.

Are you using Apple displays or did they fix it?

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They must have fixed it because I drive my two main monitors from a dock connected to one port and then my 3rd monitor from the other port. Been set up this way for at least two years now.
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I've been away for about 3 years now. My thunderbolt dock couldn't drive two monitors from my Macs, and I couldn't daisy chain display ports either. A Linux ThinkPad had no problem though. Glad they've finally fixed (implemented) it.
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Note that modern Macbook Pros can drive crazy screens.

A Macbook Pro M4 or M5 drives TWO of these at once, well, for equivalent of quad 4K configured as dual super ultrawides:

https://www.samsung.com/us/monitors/gaming/57-inch-odyssey-n...

Per Apple support page, MBP with M5 Max handles:

Two external displays

Two displays up to a native resolution of 8K (7680 x 4320) at 60Hz, 5K (5120 x 2880) at 120Hz, or 4K (3840 x 2160) at 240Hz over Thunderbolt or HDMI

Three external displays

Two displays up to a native resolution of 6K (6144 x 3456) at 60Hz or 4K (3840 x 2160) at 144Hz; plus one display up to a native resolution of 8K (7680 x 4320) at 60Hz, 5K (5120 x 2880) at 120Hz or 4K (3840 x 2160) at 240Hz over Thunderbolt or HDMI

Four external displays

Four displays up to a native resolution of 6K (6144 x 3456) at 60Hz or 4K (3840 x 2160) at 144Hz over Thunderbolt or HDMI

https://support.apple.com/en-us/101571

PS. Use TB4 or TB5 dock from Cal-Digit (match the TB version of your mac), or this or one of the rebranded versions of the same OEM: https://www.owc.com/solutions/thunderbolt-dock, or an Ivanky Fusion dock if you want to go nuts with up to SIX displays, Quad 6K@60Hz and Dual 4K@60Hz:

https://www.amazon.com/Thunderbolt-Monitor-Docking-Station-A...

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I do remember the M1 chips being uniquely capable in this aspect compared to later chips but when I say decent displays I meant 3x 120hz 4k screens with HDR on at least one.

Last year when I was browsing the only recentish Apple silicon capable of driving that was the M3 Ultra.

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Keyword is pro. Non-pro chips drive fewer screens unless you use DisplayLink. Which I did at some point, it's a hack but ok for lighter usage.
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Yes but if your debate is desktop or laptop, you're probably not looking at anything but a pro.
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Uh idk, I have a desktop and laptop that are both base. The laptop is an M4 Air which is overall faster than M1 Pro, especially single-core where it's even faster than M3 Max.
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Macbook (base) yes, but my MBP (M3 Max) is driving 4 screens for me without issue.
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Honestly the screens become more of a liability than an asset to me past 2 (including the laptop screen). I've tried. Even if I'm knee deep in work and have like 4 servers I'm monitoring, my eyes are only going to look at one screen at a time, so it's just extra window management and eye/head/mouse movement to have more screens.
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