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On Packaged Game with Oculus VR Plugin Enabled - Cannot Launch Game using SteamVR

We have our game out on steam. We have it set up so when players click the green play button in steam, it will pop up asking whether they want to play it using oculus or steam. No matter what they choose, Oculus takes it and launches it (leaving steamvr on on an upnext screen)

If we disable the oculus plugin, then the game will launch with steam but causes some errors with oculus users. Any idea whats going on? SteamVR Plugin is also enabled. SteamVR is set as the current xr-runtime. This happens on all oculus platform users. Any insight to this would be great.