Below is a fresh VRTemplate example from 4.16, the only change I made was to set “HiddenInGame” to false for the overlap spheres on the motion controllers.
To reproduce - open in vr preview with motion controllers and hold near face, observe extra black lines in vision.
https://drive.google.com/file/d/0B5cM3oP2O4-UeHZCdjJpaWtERWs/view?usp=sharing