For the purpose of LOD and LOD generation, Skyrim VR works exactly the same as Skyrim Special Edition.
Obviously different versions of the requirements need to be downloaded and installed.
DynDOLOD or TexGen started in Skyrim VR (TES5VR) game mode use the settings, configs and rules files with the SSE game mode identifier.
Keep in mind that Skyrim VR does not support *.ESL or ESL flagged plugins by default. In case skyrimvresl.dll from Skyrim VR ESL Support is detected in the in the load order, ESL support is activated automatically.
With default INI settings, Skyrim VR does not use large references. If it is clear that the large reference system will not be used at all - uLargeRefLODGridSize = uGridsToLoad - a single DynDOLOD.esp can be generated. Set IgnoreLargeReferences=1 in ..\DynDOLOD\Edit Scripts\DynDOLOD\DynDOLOD_SSE.ini before generating LOD from scratch.
Make sure to clean and error check the load order with xEdit before running DynDOLOD as explained in the Prerequisites. The Batch Plugin Cleaner for Mod Organizer or the xEdit Cleaning Extension for Vortex help to automate some of that.
Typically something like Skyrim VR - USSEP 4.2.2 and SSE 1.5.97 Compatibility Patch or Skyrim VR USSEP patch for USSEP 4.2.5b is required to fix unresolved and other errors in the load order. Refer to modding guides how to setup the base game properly.
Temporarily disabling plugins is a troubleshooting step and not a fix. Avoiding or silencing an error message does not fix the error.
Ignore suggestions to only temporarily disable plugins to complete the process. Instead fix the errors in the load order.