Both Unity's "OpenXR Plugin" and "Unity OpenXR Meta" packages specify the foveated rendering API, and the setting in the "Unity OpenXR Meta" package will overwrite the other.
There is a hidden setting in the MetaQuestFeature (appears as "Meta Quest Support" in the XR Plugin Management UI). However, there is no UI or API to set it, so it always has its default value of "Legacy", which overwrites the OpenXR setting (this happens in the ApplySettingsOverride method in Runtime/MetaQuest/MetaQuestFeature.cs).
As a workaround, you can manually edit your project's "OpenXR Package Settings.asset" (a yaml file). Search for "com.unity.openxr.feature.metaquest", then change the value of m_foveatedRenderingApi from 0 to 1.3/3/26 at 11:32 AM