Update:
If I use the Intel graphics app and set the mode to mirror using the internal (1920x1080@120Hz) display and the Studio Display I can actually choose 5120x2880.
As far as I can it is actually showing 5120x2880 on the Studio Display, and of course the same image on the internal display, but horribly scaled.
However, I cannot seem to turn off the internal display, if I try any other mode the Studio Display goes blank, and is shown as "deactivated" in the Intel app.
Speakers and camera work as expected.
Update 2:
I couldn't get 5K back, the highest resolution available in the Intel app or in the display settings was 4K.
Turns out that to be able to see the 5K setting and be able to get it to stick the Studio Display must be connected through the CalDigit TS3+, not directly to the laptop Thunderbolt port, mirroring must be enabled and the resolution of the internal display must first be set to 1080p.
Then you'll tell them to check their driver to make sure it can work with the Apple Studio Display EDIDs where:
1) the left tile has: base block, CTA extension block with tile timing, Display ID extension block with tile info, Display ID extension block with single tile mode requiring DSC (unless 6bpc is a possibility which for some reason is not for Intel drivers??? Why??).
2) the right tile has: base block with no timings, CTA extension block with tile timing, Display ID extension block with tile info.
And ask how you can verify that the Intel driver is reading the EDIDs correctly.
It has become very clear that I must accept that the time where I knew and understood everything about how my computer works is long, long gone.
Can I determine if Windows is actually transmitting 5K to the Studio Display? Obviously the 5K on the mirrored internal display is scaled. Text on the Studio Display doesn't look great either, but I cannot tell if it is 5K scaled to 4K, or just Windows being Windows.
The "list all modes" button in the "display adapter properties for display 2" includes "5120 by 2880, True Color (32 bit), 60 Hertz", which is highlighted. Can this be trusted?
I took a screenshot in Windows and opened it on a Mac, and see the same crappy text rendering I see on screen, so assuming screenshots are taken pre-scaling (which seems reasonable considering the image is 5120x2880?) I am guessing I am in fact seeing 5K. It just pretty much looks like 4K because, well, Windows.