The classic place to see compression is in dark scenes with 8-bit encoding. You get blocky edges between one intensity of black/grey and the next one up. This happens because there are only 255 discrete levels of your 3 colours, and the encoder is playing tricks to try and make 8-bit colour space look really good in "nominal conditions",.
You can also get blocky textures, where the texture resolution looks to be lower in places. This is simply because the full texture cannot be encoded into the datastream with the selected bitrate, so you get something that looks like a texture where regions have been averaged in blocks. There are a bunch of other impacts, but for me the textures stand out.
Both issues are greatly improved with Quest 3 and recent Virtual Desktop updates: 10-bit HEVC encoding gives you 1024 discrete levels for your colours, and so makes those dark scenes less blocky. The quest 3 also has ~25% higher decoding capability, meaning you can push higher bit-rates without the latency running wild.
One final note is that the Quest 3 also includes AV1 (10-bit) decoding capability. AV1 has higher quality for the same bitrate as HEVC, so you can further reduce the aforementioned texture quality issues if you have a GPU that supports: NV 4000 series, and potentially AMD 7000 but that's TBC.
AV1 isn't always a golden bullet. Each format has strengths and weaknesses, and people subjectively prefer the quirks of some formats over others. Anecdotally at the limits of the quest 3 hardware, H264 @~400Mbps is better for racing & fast shooters than AV1/HEVC @ 200Mbps. For 99% of people though, newer codecs like AV1 and HEVC should be used always.
EDIT: One annoying thing about the Meta Air Link is the lack of configurability. I gather there are applications to get into the back-end and play with the selected encoder and bitrates. Honestly though, if you're doing wireless streaming Virtual Desktop is worth £15. It sucks, you shouldn't have to buy it, but it is objectively better in all ways, e.g. it actually allows you to use AV1.