The recurring disconnection of USB 2.0 accessories on MacBook Air and MacBook Pro was fixed by the release of the new macOS 10.15.6
This USB connectivity issue would cause the USB-C hubs and devices to operate at drastically low data transfer speeds compared to their normal speeds. Normally these USB-C devices would operate at 480 MB/sec but be dropped to 12 Mb/sec. A fix was to purchase a separate USB power hub with its power source that wasn’t drawing power from the MAC USB port. As per the claims made by the manufacturer Elgato, the devices seemed to work seamlessly.
The company release notes mentioned that they had resolved the disconnection issue upon connecting a USB mouse and trackpads. The release notes by Apple didn’t mention whether this issue is related to the 2020 MacBook Air and MacBook Pro models. It couldn’t be ruled out whether it was a hardware fault in the chipset used in the Macs or a software issue, however, the new macOS 10.15.6 update fixed the issue of frequent disconnection of USB 2.0 devices like Mouses, Keyboards, etc.
The USB 2.0 devices’ disconnection issue persists with users using the beta version of macOS Big Sur on the 2020 MacBook Air or MacBook Pro. This means that the fix is not included in the Big Sur’s code yet, and hence the users should downgrade to macOS 10.15.6 or use the USB2.0 devices through a USB-C port based Powered USB HUB until a proper fix is released.