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I too have this same issue. Just updated the dock a few days ago. Now, when I dock a powered-off Precision 7560, it powers on with no ethernet connection. In the Device Manager, The Realtek USB GbE Family controller doesn't load and I get "Unknown USB Device (Port Reset Failed)". 

I just installed the Realtek driver (Realtek-USB-GBE-Ethernet-Controller-Driver_3K7FF_WIN_1153.6.0418.2022_A27_01.EXE), and that appears to have fixed it. I’ll keep testing though.

Support for Dell Dock WD19 | Drivers & Downloads | Dell US

I ended up fixing my issue!

I disconnected everything from the laptop and ran the laptop BIOS updater again. Then plugged nothing but the dock into the laptop and updated the dock firmware again. Once all that was done I plugged everything else back and Bob's your uncle!

So may have spoke too soon. Only 1 of my docks is working now. The other one at home is still doing the same thing. I've tried the same process with this 2nd dock as I did with the 1st dock - yeah that didn't work this time.

Also tried installing the Realtek-USB-GBE driver recommended. Didn't help......

try disconnecting the power from the dock.  wait a minute, and reconnect the power.  re-connect the computer and boot.

Yeah tried that A LOT. No dice. 

I am seeing this exact same issue on one of my users docks after doing Dell Command Updates over the weekend.

So far I have tried the following to no avail:

• power cycling the dock(s)
• Rerunning the BIOS update utility
• Reinstalling realtek-USB-GBE controller driver
• Rerunning Dell Dock Firmware Utility
• Verifying all drivers are up to date

I did have the user attempt to plug her computer into a 3rd WD19 dock and that dock appears to be working without any issues. Her home and office dock are still having the constant USB error.

Ill likely be opening a support case with Dell to see if they have any official answer on this but I am thinking there is some kind of

I have also started seeing the same reported issue after updating to the Dell WD19 firmware that was released on 04 Jul 2022. This issue did not occur before the firmware update. Hopefully Dell will release a new firmware that will address this problem as it appears to be impacting many users. 

I have also tried many of the fixes the others have reported with no luck. 

I am having this Dock WD19dcs . After dell prompted the critical update for it, i accepted the installation . Then the problem with USB Device not recognized - The last USB device you connected to this computer is malfunction.... pop up constantly. 

Try this with other laptop and the problem is the same

The ethernet cable connected through the Dell Dock WD19dcs will not work, so I have to connected to laptop through the USB Ethernet adapter.

Bios update and other troubleshoot ways guided by Dell / Company IT member dont works. At the end , Dell provided a new Dock and it works . Then today August 14th 2023, dell prompted an update, i accepted it and the problem with USB Device not recognize started again . This is ridiculous 

It is incredible how such an old issue is still not resolved by Dell.