Dark square is displayed in focus area in the middle of the screen

Black square displayed in the focus area in the middle of the screen.

The black square is a known issue. It is not visible in Varjo VRTemplate as it uses the forward rendering approach with recommended VR settings.

However, this issue may happen if you are using the deferred rendering method with advanced features like Lumen, Nanite and all the latest Unreal features.

Note: this issue may happen due to incompatible/unsupported post process effects both for forward and for deferred rendering.

Please make sure you do the following steps:

Set SSR to 0
Disable LODs or adjust LODs area
Switch Off via CVar command (Shadow LODs)
Adjust material settings (Reflection Issues and Transparency Issues)
Set Auto Exposure to Manual
Use Dynamic lighting (Fixed in UE5.1, Shadow Issue)
Use Simple rendering in Varjo Base
Disable Foveation in Varjo plugin