My quest 3 is lagging and my quest 2 is not lagging using the same app.

I made an apk in Unreal Engine 5.4.4.  Without any changes to quest 2 or quest 3 they both are laggy. But if I change Quest 2 in Sidequest to use cpu/gpu level 4 and set the refresh rate to 60 Hz the Quest 2 won't display the lag.  Quest 2 runs great. 

I can't do the same on Quest 3. 60 Hz will not display correctly (graphical errors).  Turning it up to 120 Hz looks the best but still shows a lot of ghosting. Anything other than 120Hz displays as lag.

This is a multiplayer game but even running as a single player it still shows lag.  Just moving the VR hands around is laggy.  

I have tried changing my code (at first I thought my code did this but now I'm not sure about that) and changing just about all settings in Unreal Engine Edit Project settings/rendering and nothing fixed it.  I changed pixel density to 1 and the Quest 2 liked that.  Without PD 1 it's laggy.  I tried rebooting the Quest 3. I tried factory reset on Quest 3. Still nothing changed.  I'm using both multi-view and instanced stereo even though every guide I've read says only to use one or the other but it will only render ONE lens if I don't use both.  I also changed the CPU/CPU to sustained high and tried variations with one low one high, both high, etc... NOTHING changed. 

It wasn't doing this before the recent updates a few weeks/month ago.  

Any ideas why it's acting this way? Was it the update? Anyone else have this issue?