It's stupid. It's a huge market, one where VR tech adds huge value. There's a huge sprawling ecosystem with content and "peripherals" that are motion synced.
Pretending it doesn't exist doesn't help their metaverse ambitions nor their bottom line.
The urban legend is that Betamax eschewing NSFW content lead to their demise in favour of VHS and while that is not entirely true there is certainly some worth to that story.
On the quest there's also SLR. Google it, as I don't want to link directly to it here. They provide a player as well as a library of suitable content you can stream. They're basically the pornhub for VR.
Only issue is that only a small subset of content is streamable for free.