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It's caused by some changes in the upcoming build to WMR's steam support, for some reason it breaks Gmod's rendering, I'm not sure if this is on Catse to fix or if they're even able to fix it, it may be an issue on Microsoft.
To fix it, roll back WMR's beta back to their last stable release, then VRMod should work fine again. It is NOT an issue with AMD GPUs as I and some others thought it was, at least not for WMR.
EDIT: Just wanted to add, it's odd that an AMD GPU works fine with WMR but not on Quest 2. Would lead me to believe it's a problem with Oculus somehow, and actually looking back at any other threads with the issue I can see, it seems like they all had Oculus devices too (not specifically the quest).
I do think it's strange that both oculus and wmr headsets have broken on AMD GPUs lately (though just beta for WMR).
Are you in any kind of beta for your headset's software? maybe try opting out if you are
I hope you are able to find a fix of your own soon for Oculus headsets!
Edit: playing around with "theatre screen mode" apparently fixes it.