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Correct, the delay only occurs when steamvr is running and it affects the preview and steamvr, but not device manager/ps move config tool.

I did have psmoveservice steam bridge installed, but I uninstalled it. I also uninstalled steamvr and deleted all config files and reinstalled fresh.

The delay is all input to the move controllers. Rotation, buttons, etc. The hand position from the kinect has no delay.