My research suggests that active USB-C should provide enough bandwidth.We will have to see if they do anything funky, but the specs say USB-C... and all my experience with those cables is that they have great bandwidth when very close but go down fast after that.
The Sony demos in the Feel a New Real | PS VR2 are well within the power of an M2 processor... colorful but not requiring great GPU power.
Those demos are far beyond the power of an M2. They're new AAA games running in 4k.