I have the same issue, I always have to click the red screen (Steam Compositor Window) to get VR picture, but then no control inputs are detected whatsoever. If I select the game window, screen turns red, but controls are detected.
Steam Media Player App, for example, behaves even weirder, as it does show the screen and does show the mouse, but I can’t click on anything, only if I drag the Steam Media Player window to another screen does it allow input.
And to make things worse, if I try to drag windows from other games to another screen, I’ll get BSOD…
The BSOD sounds like a driver issue. What GPU and drivers are you using?
The red display could be due to a series of issues. Have you searched the forum? There’s a lot of posts about this, all suggesting different fixes. Let us know what you have tried already from the posts you have found in the forum, and we’ll be able to suggest things you haven’t tried yet.