It could be coz its in VR mode.. but the game does normally run bit better then this.
(trippy you can re-play XWA in VR mode but), never thought i would see the day to be honest. not that i have a VR headset.

that is the XWA Upgrade. (you can tell by the cockpit).
the blue max effects (or special effects section)... you can select so the 3D cockpit has the buttons on the cockpit itself. (like in squadrons).
or you can have it left default.. where you have the cockpit.. but you have the Hud over it. (like it always was).
v5.5 is the latest update for the 2020 XWA Update i believe.. (Tie Fighter Total Converter isn't compatiable with 5.5 atm i quickly found out)

mate this looks great are you using any additional mods on top of XWAUpgrade?