Yes if you use Questlink to launch Steam VR, which sends it encoded.
But if you launch directly into the pc through the Virtual Desktop, it's a direct feed as far as i know....
That's how I use it (mostly to fuck around with UEVR) and it's a " dumb" connection if im not mistaken.
I launch the games through the normal Steam client with the -vr switch and then it uses the same direct shell and works like a glove.
Instead of synching Steam VR to the headset, launching Steam VR etc.
Questlink encodes Steam VR. But not Virtual desktop and mirroring the pc screen I think. Could be wrong...
But even then, a small break-out box could fix this. No need for a PS5 in between.