Not sure if its XWayland but the vision stutters a lot while everything else is smooth. Also X11 seems unusable for some reason on KDE because I get a lot of glitchy artifacts (and Direct Mode seems to be enabled)
Edit: Using an AMD 6750xt with i5-8600k on Arch Linux with KDE Wayland
Btw, forgot to come back. You can read everything here https://github.com/ValveSoftware/SteamVR-for-Linux/issues/588
Tldr Seems like it was already disabled in wayland and I need to enable this feature to not have this choppyness, but I get a completely corrupt image when enabled.