1 Degraded graphics
Resident Evil 7 has impressive graphics but this changes greatly as soon as the VR headset is put on. The VR headset lowers the graphics and resolution to a great extent.
2 Pixilated objects
Many objects become pixelated when the VR headset is put on. Far away objects become less clear and humans appear unreal as a result of the pixelation. See how Playstation VR feels like.
3 No move controllers support
The game has no support for move controllers and this degrades the VR experience by making it less real. Move controllers are known to make a game more immersive and realistic.
4 Movement is unreal
When you turn around using the controller in Resident Evil, 7 a sudden 30 degree shift happens as if all the frames included in the process went missing. This was done to reduce motion sickness, but it greatly affected how realistic the movement looked.
5 Changing from VR to normal requires saving
In Resident Evil 7, you can't shift from VR mode to normal mode without losing your unsaved progress. You need to do the change right after saving in order not to lose any progress. See also why Arkham VR game is bad.
6 It can cause motion sickness
While the improved turning around mechanism helped a lot with reducing motion sickness, some players still reported having motion sickness while playing the game in VR and even the normal mode.
7 Objects lack detail
One of the things that make Resident Evil 7 very scary is the perfect attention to detail. As soon as the headset is put on, many of those details are lost and the game starts to look very different.