This link may be helpful for figuring out which containers, resolutions, and formats to use.
Comparing what they have there to yours, it seems like colorspace, maximum bitrate, etc are all fine. I see that you’re using the hardware encoder — what if you use the software encoder?
I also wonder if your audio settings are too high for the Quest 2 (48 kHz is fine, but 192 bit depth might be out of their capabilities). Try using 24 bit.
If you run MediaInfo on the resulting file, what is the output?
Your settings are weird because it is mixing things from a “H.264 Baseline Profile” preset with HEVC hardware encoding. That means you are clicking things in a weird order. Also, it looks like constrained VBR, which is a rather advanced mode. Get something better going first by keeping things simple. Here is a suggestion.
Make sure hardware encoder is turned on
Click the HEVC Main Profile
Now make changes in Advanced but don’t change codecs!
You should always choose the closest preset based on codec and format before changing other things. Now, if you do not like the result by simply increasing video quality %, try changing to Average Birtrate and set to 100M.