Meta declare that they are working on improvement of controller tracking. However after recent update (v64) controller tracking become significantly worse than previous version. Now there is a 100% reproducible problem, whenever the controller is out of camera range (for example playing beat saber with a cross hand pose, i.e. right hand wave to left and left hand wave to right), even it's just a moment less than half second, the controller will lost tracking and introduce a delay when try to move to the correct position.
This seems because when controller is out and back to tracking area, the system try to use hand tracking mode first, takes noticeable time to track hand, then change to tracking LED light. That behavior causing a delay or non-accurate tracking. Although it's just sub-second and the tracking will not got totally lost, it's enough to fail a difficult beat saber song.
Maybe the product managers are not VR users, just blindly imagining how people would use this device, and come up with a conclusion "We should focus on hand tracking, controller tracking may be worse a little bit but 99% of the time it will be accurate so people won't care" or "users will get use to the tracking range and will then not move their hand out of the tracking range". NO, that's not the real case.
And meta developers, I understand you guys may want to eventually use hand tracking instead of controller tracking, so now aggressively onboard and testing "use hand tracking on controllers" this kind of feature. But don't break existing feature is the bottom line of feature development. Now this new feature is still useless, what you do is only "breaking existing features". There should at least a config to disable the new feature if the new feature is going to break something.