Virtual reality replaced actual reality years ago.
The fact that you ask "What happened to VR" is testament to the seamless efficiency with which the eratic and unpredictable world we knew was replaced by this prefabricated world in which all is understood.
Shows like The Matrix and Ace Lightning keep us believing that the outside is still outside and the inside still safely inside.
"Now there's a world of illusion and fantasy in the place where the real world belongs" - Jackson Browne saw it coming years before it happened.