No, it sadly doesn't do VRR and neither does this new one. According to the LTT video[0], it's because of the internal connector that the internal display is attatched with, because external VRR screens do work. They speculate that valve were just limited by what is available on the market because they are not quite shipping enough units yet to warrant fully custom designs / orders. Apparently there are hints towards this being the same supplier that also supplies the Switch OLED's screen.