USB 2 works now with latest update(may have to enable experimental features on.the PC app), but USB 3 is still recommended unless you only Beat Saber and other games without a lot of graphics. USB 2 is the charging cable that came with the Quest.
Just tried it and it gave me the option to repair the Oculus software which I did... it re-downloaded then reinstalled it, but the issue persists. *sigh* I give up. It'll just use my Bluetooth headphones for a workaround for the time being.
Spend the extra money. You dont want to regret it later then end up buying another graphics card anyway. You want the smoothest frame rate possible for VR games cause the goal is to trick your brain into thinking you're in the environment.
My new gaming PC doesn't have a USB type C port and I heard even the official Oculus link cable only has a type C plug on each end. They must be expecting 90% of gamers to also buy an adaptor who only has USB type A ports on their PC.