DCS is so unoptimized at this point that with 1070 you can run Rift S with 1.4PD. With 2080ti you can run 1.6PD with same settings. Does it make huge difference? Not for me.
You should run Oculus Debug Tool (when game is running) and check is your AWS settings are indeed correct. Oculus Tray Tool sometimes sets them wrong.
OculusDebugTool is usually localted at: C:\Program Files\Oculus\Support\oculus-diagnostics
OTT overrides in game PD. You can easily check it by using Pixel Density overlay from OTT. Right now Oculus overlay's are broken, but you can see it if you look to the side on loading screen
Btw, if you going to use Oculus Link you don't need to connect headphones to your Quest all. Just connected them to your PC as you normally do and use them as Windows Playback Device
That's not how it works. DCS passes pixel density to openvr, openvr multiplies it by SteamSS and returns fov size back to DCS. That's it, no magic. There is zero difference between settings 1.5PD with 100% SteamSS, or 1.0PD with 225% SteamSS.
Also note, that Rift S doesn't fit bigger faces. Those with oblong faces have problems with light leak (because its not possible to cover nose and have vertical sweet-spot at the same time). Also those with deep set eyes have really big problems with reduced horizontal FOV.
For me horizontal FOV is only 76 degrees. But with removed facial interface i have whooping 94 degrees horizontal FOV.
So if you are not average dude, try Rift S before buying
Flashing problem is really overrated. Some reviewer on Youtube saw it once and decided to emphasize it to get more views. Now happy haters, who don't even own rift s, run around forums telling stories about how bad flashing problem is. That's how internetz work these days