Not sure if people are still interested in this topic, but I finally made it working: MacBook Air with M2 chip and two Studio Displays (all three can be individual screen, you can also close the laptop lid and only use two Studio Displays). It is still a bit pailful and not very stable, but I will share what I did.
It is not straightforward, and took me many trial and errors (thanks to free return policy!) I believe someone in this post earlier also made it working, but did mention detailed steps. So I would like to explain what I did:
1. Install the display link software, I believe I used this:
https://www.synaptics.com/products/displaylink-graphics/downloads/macos (make sure to follow the installation instructions to allow some permissions to the software)
2. Buy one displaylink adaptor (make sure the adaptor supports displaylink). I used this:
https://www.amazon.com/WAVLINK-DisplayPort-Displaylink-Splitter-Compatible/dp/B0CTSFL3JC
The ironic thing is that if you just want to connect two displays, getting this one only probably is good enough. But if you want to connect two Studio Displays, you need to get item 3 below:
3. Buy one (you don't need two) bidirectional (I think bidirectional is important here) usb c to display port cable. I used this one:
https://www.amazon.com/dp/B01J6DT070?ref_=cm_sw_r_cp_ud_dp_L1JTZSP58UXPI9MH7KM3
Now you have software and hardware ready, let's do the connection part (also very tricky)
4. Connect ASD1 to your MBA just through the thunder port
5. Connect displaylink adaptor to the usb c hub port of ASD1
6. Connect the display port end of the cable to the displaylink adaptor, and the usb c end to ASD2 thunderbolt port
7. By default, ASD2 will still be black, but if you give up here, you will miss the miracle part. So now go to system preference -> display, and confirm it detects two ASDs
8. Select ADS2 and turn on "Show all resolutions"
9. Select “1920 x 1080 (low resolution)" (Don't know why it is called "low resolution", but other options won't work) Wait for maybe up to 10 seconds! And your ASD2 should light up!
10. In DisplayLink Manager, you can turn on experimental 3008x and 2560x mode, which will gives you higher resolution choices in system preference (I think highest it can support is 3008 x 1692 (low resolution), but every time switching resolution, you may need to wait up to 10 seconds ..).
Above should help you get two ASDs with MBA M2. There are many things still not perfect, like I don't think it can go up to 5K, and the experimental 3008x and 2560x sometimes will stop working for me, so the stable resolution I can get is only 1920 x 1080 ... And also you may notice that we only need one display port for the displaylink adaptor. But I couldn't find such configuration. There might be other solutions, but this is least cost one the I found so far!