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@questionwonder "Hardware, software, MB or monitor issue?"

It sounds like the monitor that can only achieve 4K may not have its DSC setting - display stream compression - turned on.
Is there a setting in the monitor's OSD, or in any LG-supplied control software, that you can check that DSC is enabled?

It may be not turned on for both, but the Macs can mange to support only one monitor uncompressed.

"If I only see 3840 x 2160 as a max resolution in display settings, does that mean that I'm only getting 4K data and not getting my full 5K data that this monitor should provide me..."

Yes, the monitor is not receiving enough video bandwidth from the Mac to support anything higher, like 5K.
This resolution is decided on automatically - the monitors send their EDID available settings to the Mac, and the Mac sends the best signal to the monitor that it can.

The only way to improve matters is to turn on DSC on the monitor, or install new firmware on the monitor which will allow DSC to be active.

One thing to do in both your monitor's OSD (or LG s/w) is disable 165Hz and select 60Hz. If the EDID identifies that a monitor could be set to 165Hz, then any other monitor will only get a much reduced allocation of bandwidth, which will limit it to 4K.
If you have the choice, make sure the monitors are set to DP 1.4a, not DP 2.1, as a USB4 cable doesn't support DP 2.1.
I tried setting both monitors refresh rate to 60Hz(in addition to the MAC display settings), but that didn't provide any additional resolutions. In fact, both screens are now capped at 3840x2160, instead of one at 5120x2880 and the other at 3840x2880. I don't see any DSC settings in the OSD, so I'll check to see if there's any LG software I can dl, but I don't recall anything when looking through the docs. I'll check online.
 
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This is mainly a question about angular resolution. See: https://www.yedlin.net/ResDemo/

Long but terrific explanation about resolution and viewing distance and how those factors relate.

You cannot see atoms in everyday objects ... this is also why 5k is only so useful. Or why a trillion K monitor would be fairly pointless. Coz a useful pixel is a pixel that your eye can just barely not be able to distrinctly discern. Any smaller than that and it's not providing any really useful data. Just like you cannot make out individual atoms.
 
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This is mainly a question about angular resolution. See: https://www.yedlin.net/ResDemo/

Long but terrific explanation about resolution and viewing distance and how those factors relate.

You cannot see atoms in everyday objects ... this is also why 5k is only so useful. Or why a trillion K monitor would be fairly pointless. Coz a useful pixel is a pixel that your eye can just barely not be able to distrinctly discern. Any smaller than that and it's not providing any really useful data. Just like you cannot make out individual atoms.
I understand the basics. I wanted a 120Hz 218ppi, "retina" resolution monitor, but didn't want to donate a kidney to Apple.
The LG, which was just released, was the next best thing!
My previous 4K monitors were good, but I could see the pixels when viewing from about 2 ft away.
 
OP, it would be helpful to post some screenshots.
Are you plugging each display into a different Thunderbolt port or are you running them through a docking station of some kind?
 
Set your display to the resolution that suits you best. It's your MacBook and your LG screen. They're your machines, use them the way you choose.

Apple 27" Studio displays are "recommended" to be "effective 2560x1440", where 1 pixel is represented by 4 actual pixels.

The "recommended" resolution of your MacBook is "effective 1512 x 982", in actuality 3024 x 1964, where 1 pixel is represented by 4 actual pixels.

 
OP:

I STRONGLY suggest that you try out "BetterDisplay".

It runs in "free mode", but you can also pay to upgrade it to BetterDisplay Pro (watch for specials on the pricing... cost me around $15). I found the paid upgrade to be worth it.

You can find it here:

Download page:
(scroll down and download the "dmg" file)

Perhaps a few other users of BetterDisplay will comment on it...
 
OP:

I STRONGLY suggest that you try out "BetterDisplay".

It runs in "free mode", but you can also pay to upgrade it to BetterDisplay Pro (watch for specials on the pricing... cost me around $15). I found the paid upgrade to be worth it.

You can find it here:

Download page:
(scroll down and download the "dmg" file)

Perhaps a few other users of BetterDisplay will comment on it...
what's better about the pro?
 
@questionwonder
The Pro (paid-for) version of Better Display allows lots of extra settings, and proper control of HDR monitors, and Image Enhancement controls, EDID customisation and Configuration Protection to retain settings.
 
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