It’s a tricky issue. On one side, yes, it will make some people motion sick, but on the other side limiting a game to teleport drastically limits what you can do in the game. It means nothing of currently established monitor-based game mechanics work in VR. You essentially completely lose locomotion and environmental navigation as game mechanic and everything becomes a static gallery shooter. It also means that multiplayer completely stops functioning, as while yourself zapping around might be acceptable, having the other player just randomly switch placed is certainly not.
Modern VR has been around for 10 years and so far nobody has figured out how to make teleport gaming work. Meanwhile all the unofficial VR mods gets celebrated, since despite their locomotion issues, they actually feel like full games in VR, which the teleport games never archived.
At the end of the day, it’s a far better idea to design games for the people that want to play them, then those that don’t. The early focus on teleport has regressed the VR industry for years and the conclusion after 10 years is basically that it causes far more harm than good. You don’t win anybody over for VR by showing them games that look far less impressive than what they are used to from a monitor.
Also worth mentioning that there are alternatives to teleport that aren’t stick-locomotion. Lone Echo or Gorilla Tag have you move around with your arms and hands. This gives you smooth motion without inducing or at least drastically reducing motion sickness issues. Those mechanics still feel quite a bit underused in the modern VR landscape.