Hi,
you need to use the new Vector Displacement node, instead of the old Texture Displacement node:
The Vector Displacement can be used with procedural textures, but also with image textures in Height mode.
Take a look at the difference in wireframe mode, the old displacement does not need subdivisions, but has some limitations, like negative values or tiling, while thenew displacement works with subdivisions, and does not have those limitations:
ciao Beppe