I also have a LG 34 inch ultrawide monitor (21:9 aspect ratio, 2560x1080 resolution).
During the update following the Windows 11 update, the same thing happened to me.
I followed the top rated comment to reinstall the old Windows 10 LG drivers. I also got them from here: https://www.lg.com/us/support/software-firmware-drivers?customerModelCode=24GL600F-B&csSalesCode=24GL600F-B.AUS&category=CT10000030&subcategory=CT10000033
It didn't seem to make a difference. I also restarted, no difference.
I then accidentally bumped and disconnected my windows Surface Dock 2, that is used to connect my surface 2 laptop with two external monitors. For reasons that make no sense to me, that disconnection and reconnection of the dock made the drivers take affect and suddenly it switched to 2560x1080 resolution and the LG Ultrawide screen looked perfect.
If you're using a surface dock 2, you might try to disconnect and reconnect it after making sure the LG drivers are installed. Not sure why that caused things to work?