Well, it's no Retina screen. I'd say it's bit like reading text on a 1080p CRT at 96 dpi.
It's perfectly doable, but there's still a hint of fuzziness and we're still a couple generations away from crisp LCD text.
I care about my eyes, so I use a 4k screen at 2x scaling for coding, and will not use the Quest 3 for work, unless that involves playing games and watching videos.