Keep in mind that Skyrim VR does not support *.ESL or ESL flagged plugins. ESL Flagged plugins are treated as normal plugins.
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. 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 is required to fix unresolved and other errors in the load order. Refer to modding guides how to setup the base game properly.