When I’m using the Oculus touch controls key mapped to Esc function (I think it’s left grip and Oculus button) it will never activate the Esc keyboard function because when hitting the left Oculus button will bring up the Steam VR overlay.
Switch to native Oculus in the config app instead of SteamVR. No need for SteamVR with an Oculus headset at all. Unfortunately SteamVR hard-overrides the menu button on Touch controllers. Weird decision, as that probably breaks a plethora of native VR games too.