Solved 1 monitor black when lid closed, other on, laptop screen remains on

First of all...please don't recommend I change my power settings or what happens when I close the lid option - those have already been set (see attached pic) and this configuration (described below) has been in use for the past 2 years with no problems. This just started happening - and not after any system update, either.

CONFIGURATION:
Dell Precision 7540 connected to docking station WD19DC via the double USB-C cables.
External monitors are Philips 276Es connected to the docking station via HDMI cables.

In the past, when I powered on my laptop with the lid open, all 3 monitors would power up and my desktop would span all 3.
Laptop display is #1 and externals are #2 & #3 with #2 being set as the "main display"
When I close the laptop the 2 external monitors go black for a few seconds and then come back up and my desktop spans perfectly left to right.
But a few days ago this started happening...
When I close the laptop the 2 external monitors go black for a few seconds and then the left (#2/"main") comes back up but the right (#3) says, "No Video Input".
And the real oddity....if I right click my desktop and select "Display Settings" 2 monitors are shown, but one of them is the laptop screen and not the 2nd external monitor!

What am I missing? Thanks in advance.

Hmmm...after a week of headache I solved the problem...in a weird way, IMO

With monitors #1 (external/main) and a smaller resolution #2 (laptop) showing under display settings I noticed that the setting "Extend Displays" had changed to "Show Only on 1" when I closed the laptop. When I changed it to "Extend These Displays" the lower res #2 display (as shown in the settings window, I mean) changed to a larger display, my 2nd external monitor flashed a few times, and viola...I have my nice big 27" second external monitor back.

It's as if closing the laptop lid made the laptop screen (#3) go away, as expected, but it also made the #2 display unknown and thus changed the setting to only show on #1.

For what it's worth...I tested opening and closing the lid and it's back to functioning as expected.

Hope this helps someone.

Thank you! My extended display setting had changed as well and I wouldn't have caught it without your post!

I created an account just to log in and THANK YOU for coming back and giving us the solution! Just worked for me today.

Thanks so much! after going through a zillion posts about changing the power settings, I finally found your solution and it works!
I wonder why windows changed behavior all of a sudden but hey, the problem is now solved. Thanks again!

Had to create an account to THANK YOU and keep this thread alive!!

Took me forever to find a thread not talking about "lid" options.

Thank you bro!

Simple fix for an annoying problem.

Also created an acct to say thank you and keep this thread alive! This was such a simple fix and there was a ton of useless info out there around power settings that had me spiraling over the web.

Can't thank you enough OP!!!

I second all the replies. THANK YOU! I've been searching for a solution to this problem for way too long. This simple fix was all I needed.

Also created an account to THANK YOU!

Sheesh, thanks so much! I wonder what caused it to suddenly change behavior!?!