Nightshift with external monitor and lid closed

I have a 2021 M1 MBP Monterey with an external Dell monitor. In the evening, night shift is activated and reflected on both the built-in and external monitors. However, as soon as I close the MBP lid, the external monitor disables night shift and turns bright white.

Is there any way to get night shift working on external monitors without keeping the lid an inch open?

Solution 1:

Go into System preferences, display, find your external monitor. Change the schedule from off to sunset.

Turns out that even if night shift is off for an external monitor, having the lid open will override that and enable it for all displays. To use night shift also when the lid is closed, it must explicitly be enabled on the external display.