Game does not start (Failed to initialize VR mode)

I have SteamVR running and my Quest 2 headset is connected to my PC. I click Play in SteamVR, the loading screen appears, and I get the following message: "Failed to initialize VR mode: Installation path could not be loaded (110) Please make sure that you have a VR headset and SteamVR is running." I am running a fairly high end gaming PC with NVIDIA graphics card.