Quest 2 + PS5 controller, can't use hands or Quest controllers at the same time?

I'm wondering if I'm missing something or if the UX is just really terrible.

When I paid my Quest 2 to a PS5 controller it seems I'm unable to use either my hands or the quest 2 controllers to actually navigate through the quest. At the same time within the Quest OS I'm unable to use the bluetooth controller to actually navigate menus.

As a result, the only thing I'm aware that I can do is turn off or otherwise unpair the bluetooth controller (again PS5 / playstation 5 in my case) at which point I can control the quest with my hands / native controllers again.

Am I missing something?

It's clear the Quest is still tracking my hands, it's just not actually using it for inputs at all?

Thanks for any help!!