As some might be aware I am working on the fork of VRMod , in order to optimize it for Gmod x64 and in general make it playable at least to the level of Half-Life 2 VR.

One of the existing problems is lack of unified melee system. I saw some efforts in ArcVR, but it was only within the addon. I saw efforts from the author of semi-official branch, even helped by adding velocity based damage. However I did not like the implementation. It was conflicting with hand physics (for prop interaction) as both addons were spamming props, which were essentially hitting each other. Plus holding a swep did not have any effect, same cube inside arm that does a bullet damage on collision.

I saw that you disabled melee weapons in your Lambda SWEPs, but perhaps you want to try the melee system [github.com] that I am currently working at?

It's a trace based system that works with hands and any sort of weapon, melee or non melee.
If for the first time equipped by anyone on the server, it will calculate radius by using the longest side of the currently held weapon and cache it to avoid this relatively expensive operation in the future. It might not be the most accurate method, however you don't need to worry about position and angle offsets for each and every model. One of the advantages is that we can have a custom filter. Since my hand physics uses serverside ents.Create("base_anim") instead of prop, they won't collide.

At this point you don't need do much, just test them our sweps and see if it's acceptable behavior.
If you will be satisfied by the results, we might think about further integration, such as including TryMelee() in the API.

For example the hit sound is currently based on the type(for now just "fist" or "blunt") that has a set of random sounds specifically for each one and a damage multiplier in case we use a weapon. Hypothetically I can add ability to customize these sounds, damage multiplier and maybe visual effects.

Cheers