Ambisonics, especially higher-order ambisonics, also is capable of spatial panning, though it encodes the 3D soundfield rather than individual sound sources. Again, there are a few physical formats.
Sorry if this sounds like some self-promotion - I specifically built this functionality[2] for my previous audio engineer so that he could quickly design and test sounds without the hassle of having to build/install an APK with every new audio file.
[0]: https://www.DodgeALL.com (only for Quest 2/3/3s/Pro headsets)
[1]: https://valvesoftware.github.io/steam-audio/
[2]: https://docs.google.com/document/d/1IFQjkroomHh8FocjfA-a55JP...
And then I recall there was this one old Kickstarter project that made headphones with that idea. It had an IR transmitter for head tracking.
I think it might be quite difficult to track head movement with just earbuds and not have the tracking drift, though.
It's definitely possible to have head tracking, I think it will just depend on what headphones and hardware offer it. It would be cool to give you that kind of VR listening experience but just on headphones
[1] Oddly the surround sound soundtracks that impress me the most are old VHS tapes encoded with Dolby Pro Logic
[2] let's see... Close to the Edge by Yes, Supernature by Goldfrapp, Maximum-Minimum by Kraftwerk
[3] https://en.wikipedia.org/wiki/Head-related_transfer_function