Problem VR opens in a window, not real VR

I'm trying to play this game in VR, I found out how to launch it with -vr 2.0, but now when it launches it isn't real VR, it's just me looking at a window with the game in it, which is no different from playing with a monitor except now I have a heatset on. I've turned off theater mode in the steam settings, but it still opens this way. Is there a setting in game I have to change? I don't even get any VR settings if they are supposed to be there.

 

Is this on a reacetrack or only the game menu?
Game Menu is always 2D, on the track it is 3D VR

 

Yep.. Guess I should have tried racing before posting