it's definitely not stuffy nose, I had the same utterly dry nose. In fact I felt more aware of the inside of my sinuses than I ever have before... they felt completely
empty. It was almost nice except that it was really freaky and something felt off about the sensation.
My nose has recovered significantly and I have a more familiar pressure in my cheekbones and forehead that was missing when I was sick.
IMO, based entirely on my own anecdotal experience, it's probably that the virus is really, really lethal against the respiratory lining. I have no idea what would make it so specific- maybe ACE? But it felt like it was just burning through my lungs and then my nose. It felt... dead, inside.
The ~8 hour period of losing my sense of smell was characterized by an extremely powerful smell of snot and a subtle kind of ammonia-like sensation. The distinctive smell of snot is apparently mostly due to free radicals generated by dying cells. I'm not sure this contradicts with nerve-related action though, which could presumably cause similar sensations.