Passthrough Underlay No Longer Working on Meta Quest 3 with Latest Firmware and Quest Link Update

We are using Passthrough in our Unreal Engine project with the Meta Quest 3. Since updating both the headset and Quest Link to the latest version, the camera passthrough image always appears in the foreground, covering all other scene content.

This issue does not occur when using a headset with firmware version v74 — in that case, the Passthrough Layer component works correctly and is rendered as an underlay as intended.

Current Project and Passthrough Settings:

  1. Project Settings > Rendering

    Enable alpha channel support in post processing: “Allow through tonemapper”

    Anti-Aliasing Method: “Multisample Anti-Aliasing (MSAA)”

  2. Plugins > MetaXR

    Enabled:

     Passthrough Enabled
    
     Anchor Support
    
     Anchor Sharing
    
     Scene Support
    

    Meta Quest device support: All required devices added

    Support Experimental Features: Enabled

  3. VR Pawn Class

    OculusXRPassthroughLayer component added to Camera

    Component settings:

     Supports Depth: Enabled
    
     No Alpha Channel: Enabled
    
     Stereo Layer Shape: "Reconstructed Passthrough Layer"
    
         Layer Placement: Set to "Underlay"
    

Problem:
Despite the correct underlay configuration, the passthrough is rendered on top of all 3D content on the Meta Quest 3 with the latest update.