Because VR failed to deliver at all. The experience is narrow, isolating, and frankly pretty horrible. People get motion sickness. The set of games is limited never mind the set of non-gaming activities. AR similarly has a lot of issues like narrow FOVs, low resolution, and brightness issues.

VR is a toy with a few very narrow areas of application in industry. That does not describe the current status of AI.

VRChat is not really isolating.

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