Those have existed pretty much since the start of VR multiplayer games. VR chat has them, RecRoom has them I think, there are dedicated apps for this, and many "screen mirroring" apps also have multi-user and presence.
They aren't used that much because it's a silly gimmick and nothing more. People don't roleplay nearly as much in actual VR experiences. Real life isn't Ready Player One, and real people may say they want this, but then they try it and never do it again.
It was neat to socialize with strangers in VR during covid lockdowns. It was instantly less neat when I could socialize with my real friends again. I don't have any friends from that period, and I was hanging out with VR strangers for tens of hours a weekend. There's just too many real, physical drawbacks to doing anything in VR that means unless you specifically crave the experience that ONLY VR can provide, like a driving simulator game, you don't really do it.
I've gone clubbing in VR. It's just not that special.
All the talk about AVP is full of people who seem to have zero understanding of what has existed for almost a decade in the VR space, don't seem very familiar with VR, and haven't tried to get friends and family to try VR. They all think Ready Player One, or The Matrix is right around the corner. Reality isn't magic.
For reference, VR is literally a game changer for Sim Racing, and even there most people don't care about it. Even then, it's only brought out occasionally, or for specific reasons. Headsets just suck, blocking your eyes with some form of screen will always suck for a social species like humans.