I'm seeing the same thing; here's Parallels 12 and VLC 2.1.1 being mirrored on the native monitor and the DisplayLink monitor.
In the DisplayLink monitor, both apps show garbled visuals.
I had upgraded the DisplayLink driver to version 3.0 and saw this.
I tried downgrading the DisplayLink driver to version 2.6 and I see the same results.
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