I'm assuming their is an IK in the arms that match with the controllers. As that is how it looks to me. It looks as if the IK is set too high, including the collar bone. This is what is causing all the clipping and distortion. I would suggest not including the collar bones in the arm IK, or limit it's max rotation.
Of course, I know nothing about how the rig works, but I do have a decade of experience with animation and rigs. I'm just going by what I see happening in Sansar with those with VR controls.