Same problem here!
Additionally, when I open any other template project (like first person or just simply a blank project) and I place the exact same components as you have, the SkyAtmosphere works properly. I’m not sure what’s going on here but it feels like there are some different project settings for the VR Template that are causing the SkyAtmosphere to be janky and black.
That being said I haven’t actually gone through and reviewed all the project settings to find the culprit…