I came across this issue on Reddit:
https://www.reddit.com/r/pchelp/comments/1l8xhu0/openxr_runtime_issues/
I'm suspecting it was caused by the XR_ENABLE_API_LAYERS environment variable being set to an invalid layer name, causing the loader to pass it on to the runtime. By adding the variable I could replicate the symptom of xrCreateInstance returning XR_ERROR_API_LAYER_NOT_PRESENT with OpenXR-Explorer.
This is a completely opaque error for most users, and will prevent loading of all OpenXR applications.
I'm suggesting adding checks for XR_ERROR_API_LAYER_NOT_PRESENT and XR_API_LAYER_PATH. Aside from the above issue, they both have a huge impact on layer behavior.