Look, Quest 2 has shipped.similar numbers to PS5, and that's impressive. It's not in a bad spot, but it's obviously worth noting that the numbers are in decline.
VR has a content problem. Early on a lot of people were investing in VR hoping the market would grow, but only a handful made real money. Meta has slowed way down in terms of their investment in big marquee games and licenses, and PlayStation is stuck in the gulf between generations which means no one is really funding that kind of content right now.
It may get a bit better when PSVR2 launches and hopefully that system has longer legs. The first PSVR felt like min-spec VR and felt obsolete pretty soon after it launched.
This applies to "The Metaverse" as well. If you want users to join your meta world of user content you need to create something compelling for them to build off of in the first place. You can't just build a framework, you need to create content that people want to play. Rec Room has somehow done a better job of this than Facebook's billions of dollars.