Custom Items with the 1.16.100+ format version, when held in your hand in VR, are offset much more than vanilla items. The screenshots below show two items. The green apple is a 1.10 format version item, and it displays the same as most other items. The black apple is a 1.16.100 format item, and it appears far away from the actual hand. Also attached is the addon I created to take the screenshots. Another way to replicate the issue is to login to CubeCraft, and hold their custom items.