I just got out of VaM in ALVR on my Quest, and hand tracking worked -- sort of. I found that the various control mappings listed in the ALVR FAQ didn't work at all, and even the listed controls didn't have a way to emulate the joysticks, which are pretty important in navigating through scenes. Hopefully, these issues will be updated.
Using the controls to get into and into position, then putting them down to activate the hand tracking, the experience was pretty amazing... But also frustrating, because hand tracking is really limited by its nature: when you're "touching" a character, you want to be able to use your fingers individually -- you want to use your thumbs to gently slide... things... apart. (You know what I mean.) You want to be able to curl your middle finger up inside... places. But hand tracking as it exists doesn't allow that level of individual finger control. That's something else I'm hoping will be upgraded in the future. A full, ten-finger hand tracking system, be it part of the headset's OS, an app, or a plugin, would be glorious!
I've also gone into VaM through ALVR on my Pico 4, but I haven't been able to get hand tracking to work with it. Again, I have to hope for an upgrade.