Are they serious? VRChat is already better than this in every way. Graphics quality, frame rate, full body tracking, face tracking, legs... Not to mention being able to make your own maps and avatars. I get that this for mobile platforms but VRChat also has Quest support that is better than this.
I can't think of reasons that this exist other than they might have fundamental, architectural, philosophical disagreement with VRChat that neither parties cannot tolerate but Facebook/Meta is on the losing side, like over real-name-real-face policy vs having none of it.
