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1. Ensure the Index is fully connected to your machine (and that the Displayport cable is plugged in directly to your GPU, not to a DP on your motherboard for the iGPU)
2. In Windows, go to Settings > System > Display
3. Locate and click the display representing your Index
4. Change the Display resolution to 2880×1600 (if that's not available, then look for 2016x2240 -- I run a Bigscreen Beyond these days, and I don't have my Index set up at the moment to double-check the rez that gets exposed to Windows, sorry!)
5. Click on the Advanced display settings link.
6. In Windows 10, this will be near the bottom of the page.
7. In Windows 11, this will be in the Related settings section of the page.
8. Ensure the refresh rate is set to 120hz
9. In SteamVR > Developer > Developer Settings, find the Direct Display Mode section and click on the Enable Direct Display button.
You should be all set after that and free to control your refresh rate and render resolution from SteamVR normally, and you'll never need to do this again unless you reinstall Windows or completely wipe and reinstall your GPU drivers with DDU or AMD's own cleaner tool.
Those steps aren't usually needed if you're using an NVidia GPU, unless there's something royally hosed with your display cache in Windows.
If you're not running an AMD card and it's not the AMD extended mode driver bug, then you're probably going to have an annoying bug hunt ahead of you, unfortunately. And if the Index kit you've acquired is used, there's a chance that there's a tether cable issue.
Otherwise, off the top of my head, one other major easy to fix possibility would be if you have/previously had a Meta Quest or Rift installed. Those use a different VR runtime by default, and sometimes SteamVR doesn't pick up and switch gracefully when a native SteamVR headset gets installed afterwards. If that's the case, then you'll want to set your OpenXR runtime to SteamVR, following the instructions from Valve in this post:
https://steamcommunity.com/app/250820/discussions/0/2950377478180790461#c4036980308302558114