Consumer-grade NVENC only supports two active encoder sessions at the same time. Normally Shadowplay and/or Windows GameDVR will "use up" one of these. The Oculus software may try to use one as well for some reason.
Try disabling both Shadowplay and GameDVR to 'free up' the first NVENC session.
I'm not certain what function of the Oculus software would be trying to use one of the sessions or for what purpose, you'd need to contact Oculus support for details about that, and how to turn it off.
Alternately, there are unsupported third-party patches for the nVidia GPU drivers that unlock consumer-grade cards to be able to use more than two NVENC sessions, but that is very much at-your-own-risk, we cannot provide any support or further information here, beyond the fact that they exist.