The built in Spatiailzation plugins are not working in 4.27.1 with the exception of the Google Resonance.
The Oculus spatialization option is not producing sounds.
In Test Rail I can see that the test related to this passed April 2021 in UE4.
In UE5 it passed on Early Access in February 2021.
1) Launch or create a project
2) In Project Settings, select your platform (ex Windows)
3) Under Audio, set the Spatialization Plugin to Oculus Audio (the Oculus Audio plugin needs to be enabled to see this)
4) In the Content Browser, create a Sound Attenuation asset (Sounds > Sound Attenuation)
5) Set the Spatialization Method to Binaural
6) Open any Sound Wave asset
7) Add your Attenuation asset under Attenuation Settings
8) Add the Sound Wave to a level
Audio plays and is spatialized
No audio plays
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-134424 in the post.