Since the most recent update, PC/non-quest compatible avatars have no IK (arms to side) and load in as the Error avatar instead of the PC avatar (with the user's icon).
Steps to reproduce:
From what I can tell, any PC player with a non-quest compatible avatar will show this problem.
Simply load into any populated public world and you are likely to see it.
While it may seem a minute detail: Error vs PC avatar, this is really detrimental to the quest experience for two reasons:
1. Most importantly, the Error avatar has no IK, so everyone has arms to the side as if on desktop: no VR hand motion is making it much harder for me to communicate; no headpats, etc.
2. The error avatar is missing the icon, which is really useful for telling apart people without looking at nameplates, and it's more friendly to interact with someone who has a picture of a face on them.
Here is the output log (as much history as I have): doesn't show much useful but you can see that non-quest compatible players don't go through Avatar_Utility_Base_LOADING(Clone) first... instead, they load directly as Avatar_Utility_Base_ERROR(Clone)