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Do you have "SteamVR" and "Windows Mixed Reality for SteamVR" installed (the has been requiring SteamVR for VR since some patch late last year)? Are your Headset and video card drivers up to date?
Ensure that your headset is connected to both USB-C and the DisplayPort on your video card and Windows Mixed Reality is running before you start Squadrons. You should then get the VR Settings menu in game where it would let you toggle VR on.
Also, you can download some of the free VR games/demos on Steam and see if they work just to ensure that the headset is working with other SteamVR games.
My own Reverb G2 is detected just fine by Squadrons. I play on Origin, but I had the Steam version for a short while (I refunded it since I couldn't transfer my save/progress over from Origin) I tested it there as well and it worked.
So this is funny. I ignored the steam VR thing because I don’t use steam for this game. But once I installed and started with Steam VR - it all worked. Didn’t realize steam VR is the trick. Also turned HDR off in windows and used windowed (important) vs full screen to fix a few other issues ( colors off , can’t watch cut scenes because they were not calibrated at all). Now everything works amazingly!
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