What is Kernel parameter amdgpu.dc=0 doing and why do I suddenly need it?

It’s a really new card that should be supported by the new DC layer.

It’s most likely a bug in the kernel, in the amd DC part.

Think of DC (previously called DAL) as build in translating layer wich enables AMD to share lots of code from the Windows driver.

You putting DC=0, you are disabling that layer because the switch that decides if DC supported card is present is turning it on.