In the case of software content, that would include automatically recompiling the content that you upload to a new target format in the future, so if Oculus develop a new way of deploying content in 5 years time they won't have to bin everything people have uploaded. It's not really any different to Youtube asking for a license to transcode video content in to new formats.
They could ask only for the right to do that sort of thing, but a more broad language covers things no one will have thought of. It's not (necessarily) evil.
If you upload an image, and they want to re-encode it, or create a thumbnail for it, they need that right assigned to them it they're infringing copyright.
Creating a thumbnail, re-encoding, rounding corners, borders, auto enhance etc. I can think of a million ways websites modify user's photos. Likewise for uploaded text they filter for black words, auto trim, strip XSS/SQL attacks etc.
Consider this example: If you upload some screenshots of your app to an app store for Oculus/Apple/Google/whoever to display with your app, what exactly do you think a thumbnail is? Or transcoding from JPEG to PNG? Legally, it's a derivative work, i.e. an adaptation. There is nothing sinister about it. Lawyers gonna lawyer.
They could ask only for the right to do that sort of thing, but a more broad language covers things no one will have thought of. It's not (necessarily) evil.