So I was doing some bored comparison, and it seems like it's really the full graphics, running along foveated rendering. The game basically looks the exact same. Same patches of grass, same assets, same textures, same lightning. This is about to be something incredible. The only thing they have turned off is procedural grass. (only noticeable in other tracks).
This is GT7 - PSVR2 version:
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This is GT7 - PS5 Version: (different car)
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You can see the exact same assets at display, even the shadows look similar.
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from the last PSVR video.
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From my PS5 version.
All in all, it seems procedural grass is reduced or off, and motion blur is turned off too.
It's the same game, even graphically