What the picture should look like

Goal: a Red Pin that fills the VR180 plate, edge to edge. The raw cameras can look like two normal phone frames. The stitched output should not be two hockey pucks on black.

Right

Wrong

Two circular images on a black field, often with Shift far from zero (for example −105). That is the USB fisheye stitch. It circle-crops a 16:9 iPhone frame and throws away the sides you meant to keep.

If you see circles: choose Lil Eye in the device list again. The lock snaps Input off fisheye stitch, sets Shift to 0, and sets the field of view to 180. A real fisheye camera (Insta360-class) is allowed to stay on the circle path. An iPhone ultra-wide is not that camera.
Tip: Two phones do not invent extra scenery past what each ultra-wide already sees. They add depth. The stretch is what makes that view fill the headset.