Ambisonics indeed works better for ambient sounds since it’s hard to make it work for point sources that are intended for the user to approach and listen to from different distances, but I don’t believe it behaves oddly (unless not properly setup). Ambisonic sound fields do rotate and that is what actually produces amazing results paired with a VR headset since you can then simulate a diffuse field as it happens in reality. When I experience VR that neglects this (i.e. leaving the ambient sound completely non-responsive to head rotation) I notice it and find it to diminish the illusion of presence. This is what ambisonics is great for. I’ve recorded ambisonic soundscapes using a 2nd order microphone (OctoMic) and listening to them in VR, with proper headtracking and rotation, really gives you that “gut” intuitive response that makes you feel like you are in that place, including very defined sources at a distance (e.g. a duck flying and quacking and hitting branches a few meters away).