VR Distorted view with new hardware and Rift S

guys… i am not new to VR.
what i am talking about is not the classic reprojection distorsions between frames, I don’t have issue with that.
It makes no difference if I set ASW = 0.

There is some issue with the whole VR view getting squeezed when moving the head up and down.
here a representation of the issue:


A “square” (picture 1) in game would look like (picture 2) when looking up or down or vice versa.
This does not happen with other games such as DCS