I remember when the first virtual world Second Life was launched.
I used it to recreate some scenarios and sell them to real-world businesses so I spent some time there learning all the capabilities of the platform to use it to recreate real scenarios. The story you explain in your post is exactly what many users (players) of Second Life were experiencing while spending time on the platform. It was quite easy to blur your real life and your virtual one while spending time there.
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And just think what has changed in the "gaming" world since Second Life? One of my brothers and I would talk about these things 25 years ago together. We should have written a book, it would have been prophetic.
In a way, Neal Stephenson did in Snowcrash as the novel is considered the precursor of SecondLife.
https://en.wikipedia.org/wiki/Snow_Crash