DisplayLink works over any USB connection and doesn’t require DisplayPort Alternate Mode, but it has some quirks and isn’t as “smooth” as a directly connected display.
I believe Thunderbolt displays don't use DisplayPort Alt Mode, they use the DisplayPort embedded in the Thunderbolt. That makes three possibilities for how a USB-C monitor connects to a computer, DP Alt Mode (the most common), Thunderbolt (less common) and DisplayLink (the fake video port, also less common).