Actually I would argue it is VR first and AR second because in its dormant, non-powered state your view is completely blocked whereas if it were AR first you would just be looking through transparent glass lenses in its dormant, non-powered state.
Apple’s final destination with this product is AR and they are using it as AR but it is a VR headset replicating an AR experience because we do not have the technology yet to make something like this being AR dominant.
I say AR because they do full video passthrough first and have their UIs try to look a part of the real life environment (shadow effects on irl objects, menus are all semitransparent, etc).
You have to choose to do immersion instead, even the dorky eyes are implied to make it useful in IRL settings.
Not everything is good (the eyes are a total miss, the avatars are uncanny).
