Ok, I have put 100's of hours into Skyrim VR on my 6900XT.
But I have been back playing it with the Mad Dog Overhaul to test the various codecs with the 9070XT. Got to say I am now hooked again. The game looks amazing. If you haven't tried Skyrim in VR yet, it's a must play, really. And even if you have tried it, I suggest you try the Mad Dog Overhaul. It really brings the game to new heights.
For those interested, I have tried the various codecs and bitrates on the Quest 3, using Virtual Desktop, Steam Link and Airlink/Link. The three games I have used are Fallout 4 VR(Vivid Fallout), Skyrim VR(Mad Dog Overhaul) and Half Life Alyx.
I tried everything from Link at 960Mbps, to AV1 at 50Mbps. Even did a modified Steam Link configuration to get the max encoded video size.
At the end of all that testing my favourite is AV1 on Virtual desktop with 150Mbps. Depending on the game, I change the resolution between Ultra and Godlike. It's the best compromise between latency and image quality. In Skyrim, using High bitrate H.264 gave a very clean image. But, the colours are nowhere near as good as Av1. Hevc seemed to have very high latency for some reason and there were some stutters. As I said earlier I know Guy Godin said he reported the issue to AMD, so I might come back to HEVC after the next driver release.
But, what has all this testing taught me? That AMD has caught up with Nvidia in the VR side of things. And second that there is no one size fits all answer to the "what codec/bitrate do I use?" It's really down to personal preference and your own setup. How much gpu power you have, wired or wireless, router, etc. etc. And I have learned one thing, higher numbers does not equal better.
Saying that, I think if you have a GPU that supports it, AV1 at 150Mbps would probably suit the vast majority of people who use the Quest 3.