The custom firmware isn't actually all that interesting of a point, because slightly broken display behavior is extremely common if you look closely at anything other than normal everyday TV resolutions and refresh rates.

USB-C/DP to HDMI adapters often need to do some amount of rewriting EDID information because they need to be transparent to the host computer and the display, so it's the adapter that's responsible for ensuring that modes that cannot be handled on both sides of the adapter are not advertised to the PC. When you layer that complexity on top of the existing minefield of ill-conceived EDID tables widespread in monitors, on top of the limitations of macOS (limited special-case EDID handling, little to no manual overrides/custom mode settings), it would be more surprising if there weren't some common use cases that theoretically ought to work but are simply broken. Applying the necessary EDID patch via adapter firmware is simply the easiest option where macOS is involved.

Even on Windows with a DP cable directly from GPU to display it's not all that rare to need a software override for EDID in order to use modes that ought to work out of the box (eg. I have a recent Dell monitor that cannot simultaneously do HDR and variable refresh rate out of the box).