Apple Studio Display is the monitor Apple could have sold 5 years ago at the exact same price point, since it is basically the same display they have been sold on iMac 5k since late 2015. I think it should have come with at least VRR(ProMotion for Apple).
The problem is that Thunderbolt 4 does not has enough bandwidth for 5K 120Hz. And applying VRR for <60Hz is pointless as it's a desktop monitor not a laptop one (where ProMotion can reduce refresh rates to save battery life).
Just for reference:
4K (3840*2160) @ 120Hz @ 8-bit: 35.83 Gb/s
5K (5120*2880) @ 60Hz @ 8-bit: 26.54 Gb/s (Studio Display)
5K (5120*2880) @ 120Hz @ 8-bit: 53.08 Gb/s
6K (6016*3384) @ 60Hz @ 10-bit: 43.97 Gb/s (Pro Display XDR)
Thunderbolt 4 provides a peak theoretical bandwidth of 40Gb/s. The only way that you can pipe 6K (60Hz; 10-bit) over TB is by using DSC. 5K @ 120Hz is unfortunately unattainable with current tech. It also explains why Apple can't provide a second TB port for daisy-chaining. There's just not enough bandwidth.