In my case it's taking the square 1440x1440 and stretching it to 2560x1440 on the VR mirror instead of fitting it to the screen. If I manually set it to 1440x1440 it looks normal.
The crop to rectangle option is not responding on my system.
I tried a reset by '.old' the \Saved Games\DCS.openbeta and having a fresh one created and it did not resolve the issue.
It's occurring with 'normal' and MT options, with one monitor or two, in low, medium, high and VR settings.
When 'Use DCS System Resolution' is ticked it occurs, unticked it looks like the normal VR square.
I updated my GPU drivers to the latest version.
Occurring with Rift S and not forcing openXR in the shortcut.
options.lua