I also have this issue.
I have tried:
Deleting and re-installing the Minecraft for Oculus VR runtime (6.0MB).
Increasing permissions for all Oculus Minecraft files and folders to full access.
Deleting and re-installing Minecraft 1.16.200.
Running the Minecraft Windows 10 version prior to running Oculus and then leaving it running while starting the Oculus Minecraft launcher... same crash after checking for updates.
Restarting the PC, leaving nothing running in the background, and then just starting Oculus. Then clicking on the Minecraft Oculus VR launcher... same crash after checking for updates.
Please advise.
Sincerely,
-RLJ
Same here, crashes when creating the world. Emailed for refund but no reply from Nintendo surprise surprise! Version 1.16.40
Checked my drivers; they are up to date.
If this is the solution, then it does NOT work. It only allows Minecraft to finish loading, but VR still does not behave as it did prior to the shift to OpenXR... and so this new chain of programs between the Oculus and OpenXR/Minecraft still does not work. It now directs you to a different Oculus runtime .dll: LibOVRRT64_1.dll, which was last updated on 12/10/2020. However, Minecraft on Oculus never had to use this before. It used to be a beautiful, functional, and polished implementation that prevented motion sickness through stepped turning, ran at 90fps, and properly blurred the background when opening menus/chests. What we have now is absolute garbage.