I have also tried making a basic project from scratch and the problem still occurs. If I use OpenXR as the plugin provider the hand placement is perfect, but as soon as I switch to Oculus the hands appear significantly lower then they should. Unfortunately my project doesn't work with OpenXR as the provider and there are various options with the Oculus provider that I require anyway. He's my repro steps for a plain sample project that shows the problem.
Broken version:
New 3D Unity project in Unity 2022.3.10 (also occurrs in 2022.3.17)
Switch platform to Android
Open Package Manager and install XR Interaction Toolkit
Confirm yes to enabling the backends when prompted
Install XR Plugin Management, OpenXR Plugin and Oculus XR Plugin in Package Manager
Import Starter Assets sample from XR Interaction Toolkit package
Open scene Assets/Samples/XR Interaction Toolkit/2.5.2/Starter Assets/DemoScene
In Project Settings/XR Plug-in Management, set Oculus as Plug-in Provider
Build & Run. Notice controller position is far lower than expected.
Fixed version:
Switch Plug-in Provider to OpenXR
under Project Settings/XR Plug-in Management/OpenXR/Interaction Profiles add "Meta Quest Touch Pro Controller Profile" and "Oculus Touch Controller Profile"
Under OpenXR Feature Groups enable Meta Quest Support
Project Settings/XR Plug-in Management/Project Validation click Fix All
Build & Run. Controllers now appear in correct position
