Oculus Rift S here but I imagine it applies to all as my issue had to do with the latest ReShade update that injects VR argh. If you’re here you know the error well, the red bar that says init fail.
Solution, install SteamVR (I never have it because it sucks) but I downloaded all 5GB just to get to this screen:
Click Manage OPENXR api layers
Turn this to OFF. BAM, everything is back to normal. This even messed with Eleven so I couldn’t play ping pong. So if you had recently installed reshade or any other API layers turn it off here.