Correct there is no interaction with the controllers in VR mode. Yoke is more realistic than controllers. However outside VR mode, the controllers are excellent in MSFS2020 for drone aircraft flying.
In VR you can interact with all functioning aircraft equipment just like real world flying. The desktop mouse pointer is your hand in VR.
MSFS2020 app and forums have really great info and tutorials to get you going.
There are peripherals like "Fly Inside " that provide virtual hands. Reviews are mixed but check it out on YouTube. I don’t use it. Maybe one day I’ll demo the app. I use a programmable joystick. Honeycomb is touted to be the best budget conscious yoke and great for VFR. I plan to buy it someday.
The mouse pointer will show up differently depending on which flight simulator you are using.
In Prepar3D, the mouse shows up as a small circle. In Microsoft flight simulator 2020 The mouse shows up as a regular arrow pointer.
Your hands will not show up in flight simulator. Only the mouse pointer shows up when you In VR mode in flight simulator.
You have to be very careful about your mouse pointer when you enter the VR mode. The mouse pointer is affected by both the mouse on your desk and your headset. Both of them will move the mouse independently. So when you enter the VR mode be careful not to dislocate the mouse pointer from view either by moussing too far away with the mouse or turning your head to the side. My best suggestion is to center your mouse by desktop before entering VR Mode. Once you enter the VR mode, locate your mouse first before turning your head.
Have some Dramamine on hand . . .