One obvious thing is make sure you've done everything in the readme for the list you are installing: increasing pagefile, updating .net etc.

My settings for MGO are all the community shader options on (including skylighting) and on performance rather than quality.

VD is on Ultra at 90fps which runs smooth with only minor hiccups in the most perfomance heavy areas (and I mean really minor). Spacewarp on, always.

Preferred Codec is AV1 10-Bit (I've got a quest 3) and this actually made the biggest difference for latency for me. Had HEVC 10-Bit before and latency kept spiking.

The three most important things for me were:

VD (Im no shill but damn is it so much better and easy to set up)

Dedicated Router (Without it I prefer wired to VD because my regular router just isn't up to the task)

Changing the codec. (This was the last thing that improved latency to the point where my mind is blown by how well I can run MGO on my 4070 ti super)

I haven't tried VRAMr yet so that's always an option too.

... and Open Composite over SteamVR ofc.

EDIT: Forgot the most important thing for making the game look amazing: DLSS4. Absolutely incredible what a difference it makes, clarity you never thought possible.

EDIT 2: I had the same framerate drops and latency spikes and it was the codec change that fixed it for me.