P2422HE, Input Source not switching to DP automatically

Hi,

I have the following observations about auto switching input source from USB-C to Display Port.

Monitor configuration as follows:
Input Source:  Auto Select = On,  Auto Select for USB-C = No 
Firmware:       M2B204

I have a dual monitor setup. Dell P2422HE USB-C (Primary Monitor) and HP E223 (Second Monitor). These monitors are connected using Daisy chaining as extended display setup on Windows 11 OS.

1.  Two input sources are connected to the Dell P2422HE Type C monitor.
      1st source :  From a laptop to USB-C port
      2nd source:  From a desktop to DP In port

2.  1st source (Laptop) is switched on.  
     2nd source (Desktop) is switched off.
     Both the monitors are showing extended display from 1st source. Working fine.

Now

3.  1st source (Laptop) is switched off. USB-C port is still connected to laptop. Both monitors went to stand by mode.  
     2nd source (Desktop) is switched ON.

The Problem: There is no display on the monitors. Input source Auto Select monitor configuration did not automatically switch to the DP input source. I had to manually change the input source from USB-C to DP or select Auto using the joystick on the monitor to make the DP input source active (using the input source select shortcut). OR  I have to disconnect the USB-C cable from the Laptop (1st source) for the DP input source to work.

However, when the 2nd input source (DP port) is switched off, the monitor automatically selected the 1st (USB-C) input source. This is working as expected.

Can someone please help me with this problem if I am missing any other configuration to switch from USB-C to DP automatically?

Please let me know if any other inputs are needed.

Thanks
Subrahmanyam