I use the Quest 3 and Handy almost daily to watch videos with funscripts streamed from my NAS.
The first missing part of the equation: HereSphere is the best video player for Quest. There’s both a Quest version - available through the Meta AppLab - and a PC version on Steam. I use the Quest version myself, which means I don’t need a PC to watch videos since they’re streamed from my NAS.
If you don’t have a NAS you can use SMB - file sharing - to access videos from HereSphere on the headset over the network and get the videos from your PC. There are some serious drawbacks to this file-based approach though, since you don’t have anything but the filename to go from. Your funscripts also need to be in the same folder and share the same name as the video files.
So I use xbvr. It is a VR porn library manager, which scrapes sites for a list of all the scenes, matches videos and funscripts to those scenes, and allows you to browse in a nice gallery view from HereSphere. You can search, rate, and manage scenes all from HereSphere as well.
I host xbvr on my NAS where my files are stored, but you can also run xbvr on a PC, Mac, or in a container. All it needs is access to your files.