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I have not had any issues since updating the firmware and I am very happy with it now. I love the fact that I can switch between my MBP and the HP laptop from work and connect both with the same single USB-C connector. Sure this firmware update should have been released a bit earlier but at least they solved it now...
 
I do want to report back that I am still seeing significant issues with my Caldigit USB-C Dock even after the latest firmware update(the second one I've had, Caldigit sent me a new one to try to address theses issues previously). I would use my 2020 13" Intel Macbook Pro undocked on battery power. Then close the lid, then the next day open it up, unlock it via TouchID or password, and plug it into the dock and USB mouse and keyboard often, not always, do not work until restarting the Mac. Random USB device freezes too still.
 
Reconnect does not recognize any USB devices on Catalina 10.15.7 on Macbook Pro 2020 (Intel). Did work on earlier OS version.
 
Well - before I got the 2020 13" Intel Macbook Pro I tried out a Surface Pro 7 with the same Caldigit USB-C dock and it worked fine for that. A little finicky in sleep mode but if I recall, the Surface Pro 7 only had the USB-C port and a USB-A port, so I'd use the USB-C to Caldigit for power and to my Displayport displays.

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I did apply the firmware update to my Caldigit dock and it seems to be better (Still running Catalina 10.15.7) I used to have my USB mouse and keyboard randomly stop working - not so fun. Will report back if I see more issues.
USB devices still stop working for me with this dock. I believe it's a broader 2020 Macbook issue.
 
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