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You selected the issue: "Compositor is not fullscreen" / Display is red

A red screen will show in the headset anytime the compositor can't go full screen. This may happen if another window overlaps with it.

Troubleshooting:
Enable Direct Mode
Launch SteamVR and go to SteamVR > Settings > Developer tab > Enable Direct Mode

Direct Mode ensures that your HMD is not recognized as a monitor. If you close SteamVR and the HMD display shows your desktop, this means that Direct Mode is not enabled. When Direct Mode is running properly, you will only see VR content in the HMD.

If you have trouble enabling Direct Mode, make sure that you've installed the most recent drivers for your GPU.
Update your GPU drivers
If you are not able to activate direct mode, your drivers may be incompatible with that feature, and will require updating. Nvidia 360.75 and up, and AMD 1.0.3.16 and up support Direct mode for VR devices.

Go to your manufacturer's website to install the latest drivers for your video card:

Nvidia graphics card drivers

AMD graphics card drivers