The ticket with HP just ended up going round in circles and them saying they are still testing the issue so did not get very far with that.
The G4 Thunderbolt 120W dock seemed to be better than the USB-C G5 dock so we went with the G4, now that the teachers have been back a few weeks it has been going well, the setup that finally worked was as above but setting the large screen to HDMI version 1.4 and the laptops to 4k30hz (60hz still flickered/blacked out constantly), so far it looks and performing quite well. We ran into the "too many USB hubs" issue for the touch screen, cant have more than 5 links between laptop and screen so that is going to mean new USB booster cables. Only screen issues have been youtube adverts still cause a flicker and sound to cut out for some strange reason, no idea what that could be yet, they seem to be running well apart from that.
Hopefully new firmware for the dock etc will improve it over time so its not on the limit as only fall back at the moment if something else happened would be wire through brushplate to remove faceplate as an extra link. The Active AOC Fibre HDMI cables was worth it, most of the runs are 10-15 metres. (all the longer rooms are wireless Screenbeams instead)