The description doesn't ring a bell specifically, but it does make me think of the works of Philip K Dick. In case you haven't already found it, Goodreads has a list of 'best VR and AR novels' at https://www.goodreads.com/list/show/106036.Best_VR_and_AR_in_Science_Fiction. I'm not sure I agree about 'best', but maybe something there will be familiar.