Meta is making audio spatialization on Quest more realistic by upgrading the HRTF model. Spatial audio works by using a Head-Related Transfer Function (HRTF), a mathematical function that calculates the filter to apply to the audio for each ear to make it sound like it was emitted from a precise point in 3D space relative to your head. It’s completely different to the basic audio panning used in most non-VR games.
Highly recommend the Anchor VR P10’s for a great low-latency quest earbud. Usually $80 and under.
I recall Racket NX licensed another HRTF provider - Waves for there game.