There appears to be a bug in the AMD GPU drivers regarding SteamVR AMD Motion Smoothing and Radeon VII GPUs not working properly. I can confirm it definitely cuts out as soon as it kicks in for a VR application.
I'm using the latest AMD GPU Drivers 19.5.2, SteamVR 1.4.18, HTC Vive.
https://www.roadtovr.com/steamvr-update-brings-motion-smoothing-to-modern-amd-graphics-cards/
Can the driver team confirm this and when there might be a possible fix?