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There is most likely nothing wrong with your machine if you can run other VR titles just fine, like I do. Beat Saber, Skyrim, Elite: Dangerous - Odyssey, Evochron: Legacy SE - all fine without issues.
you should be able to play NMS on your machine with at least an acceptable performance. Although the ECHOES update made VR performance much worse, i can still play NMS even on my RTX 3060/12GB GPU with a Ryzen 9 3900X.
Nevertheless, i need to use DLSS Balanced/Performance mode and use SSW frame generation via Virtual Desktop while using the highest Quest 2 or Pico 4 resolution at 72Hz.
Things get much worse on GPUs with only 8GB of VRAM, which results in NMS running better on my RTX 3060/12GB than on my RTX 3070/8GB.
PLEASE report these issues to Hello Games here: https://hellogames.zendesk.com/
It's important that they know about these performance issues, since no developer will read this forum.
So ... uninstalled Nvidia drivers and rolled back to minimum that Oculus link needs to work: v471.41
Did the switch 3D settings in Nvidia to Performance
Also did the ...\SteamGames\steamapps\common\No Man's Sky\Binaries\MNS.exe > properties > compatibility > Change high DPI settings > Override > Application
and in the Game I have dropped all the details to minimum > and it works sort of OK ...
I didn't have much time to try to "tweak them bit up" ... but it sort of works OK in VR = playable (considering my old rig).
(addon: I haven't tried this one yet = exit the Nvidia experience ... for the Nvidia's overlay can also mess with the performance in VR )
Oculus Quest 1 , i7 (old-6 core 2014), 32gb RAM, Nvidia 1060 , SSD's
+ i'm experiencing the issue that Oculus APP thinks I'm connected only via USB 2 ... ( though everything else runs smooth )
the question is why did it work for most people before the ECHOES update ?
..>...>new content drops>VR performance tanks > smaller updates (after about 4-6 weeks)> VR works fine >new content drops...>
well, this hasn't been the case for the past couple of updates. With every update this year VR performance actually got better. That may be related to the PSVR2 version that has been released early this years, so HG did a lot of optimizations to the core code. With ECHOES even more optimizations were included specifically for the PSVR2 (eye tracking), but this time it had a negative impact on PCVR performance.