You could modify the example to avoid the usage of zones. In this case you will need to make the update panel visible (right now it is hidden because it is placed inside a div with style=display:none) and after you add the docks to the update panel do not move them to the zone but simply undock them on the client which will make them children of the body. I am attaching our Dynamically Created Docks
online demo modified to demonstrate this possibility. Please, note that I have also set Top and Left to the docks to make them display in a well-arranged manner.
the Telerik team