I also had that under suspicion, but it seems that the Remote Desktop server crashes on its start. The Login loop just exists since the UI Application is not able to communicate to the Remote Desktop Server as it never started up. I already had this idea when installing onto another Mac. The first thing I was asked about to give screen Record permissions to "Meta Quest Remote Desktop Server". On the MacBook, this never showed up.
Taking a look in the Log files clearly states the crash with the exit Message: