Oculus Quest and Rift S use similar inside-out tracking, with cameras on headsets tracking not only the user's head but his hands as well. Although this works well in many cases, there was a certain dead zone at the start, as the hands were brought very close to the headset, which could lead to a spotty pursuit. Oculus announces that tracking in this particular area has been improved as an update for Quest and Rift S has been released.
While Quest and Rift S certainly have the most comprehensive controller tracking coverage we've got from similar inside-out systems, both had notable dead zones as they brought the controllers very close to the headset. In many cases where the controls pass the deadband only briefly, the tracking is done properly by making some best guess about their position. However, in games where the player's hands are constantly in the dead zone, these estimates become inaccurate, occasionally causing your hands to drift off or disappear.