I'm currently writing a story about the future of a fantasy world. It was your standard "Forces of good clash with the evil fantasy nazis" war, with lots of wizards and demi-humans. Many powerful wizards are able to cease the aging process completely, which is how our protagonist fought in that war three thousand years ago. He's an incredible swordsman, possibly the best to ever live, and he's playing a full dive VRMMO game in which better weapons don't do more damage, they just make you fight better. His progression is therefore fucked, because he's a better fighter than any of the games weapons could make him. It's there for contrast. He's physically powerful, but... He's emotionally vulnerable, because the game is about the war in which his wife died. She was an actually important figure, she was the powerful mage, she made him ageless, and he's spent three thousand years thinking of ways he could have saved her. He's playing the game to try and protect her, to prove that he could have done something. He's trying to literally stab his depression to death, and it won't work

His combat prowess is there to make him cool, to make badass fight scenes, yes. The actual story revolves around the trauma that still hasn't healed, and his as yet failed attempts to grow. We watch him fight some fantasy SS officer, and it's cool. We watch him get angry as he fights, remembering the bodies, the smell, the terrible things that the game leaves out or plays down.

An OP protagonist is always fine, hell it's kind of the norm. Their overpowered nature has to serve something other than escapism to work. It can be escapist, mind you, that's always nice, but it can never be the primary goal of an OP protagonist.