The callstack is not XR-specific, it's just the engine trying to secure the audio device on startup, windows failing to return one, and the app not being able to continue safely. The crash does not happen in VRTemplate with the same steps, but does happen in this template. I thought maybe it was the active audio device in windows specifying the HMD, but that not being compatible with "-nohmd", but changing the device to "speakers/headphones" did not alleviate the crash. I also thought that specifying "-noaudio" as well might resolve the issue, but it does not. Though I'm thinking I might be correct in my assumptions that it's the audio device, but not the output but the input. I only have HMD devices available for input, but I'm wondering if you plug in and select another microphone device the crash goes away?
It might just be that "-nohmd" is incompatible with having the HMD selected as the microphone device in certain situations.
This seems perhaps Oculus plugin specific?
There's no existing public thread on this issue, so head over to AnswerHub just mention UE-112452 in the post.