I solved my issue kinda. In summary, like many in this thread, my car was retrofitted with center storage area usb module (Tesla oem part installed by Tesla in my case) which supports data & power since hardware 3 cars built after 11/2021 have power only modules. Hardware 4 cars are out of luck, no retrofit possible.
So now that we have context, here is what I noticed after updating to car firmware 2024.2.7 . My car no longer recognizes usb-c devices. However, if I plug a usb-a device in to the usb-c port via a data capable usb adapter, the car sees the device. I also have a usb bridge connected to my glovebox usb-a, this bridge has a usb-c slot and usb-c devices plugged in to the bridge are ignored.
Basically, seems like latest car firmware is ignoring usb-c devices.
Please remember, Tesla can apply software behaviors based on car config & they know hw3 cars built after 11/2021 are not supposed to detect usb-c since the car came with a single usb-a data capable port. It will be interesting to see if others who have the retrofits & latest car software also notice issues with usb-c devices. Good luck to all.