I was a bit of a leader in VR once, have a videotape "Fundamentals of Virtual Reality" sold to over 4000 universities around the world through UVC (now defunct.) Worked on image processing real time acquisitions since. I am aware of the state of AI etcetera. We are a ways from that scenario still.

What we aren't so far from is a situation where actors can play virtual parts who are in a distant location. That's doable now.

That said, while military regulations may restrict fraternization, enforcing those for intel gathering is just plain silliness. Those are the networks that get you places.

For instance, staying out of the drug transport/payment networks means you are kept away from Osama's support system. Get into it in Afghanistan, you'll have a shot at finding him. Staying out of gun running networks means you can't keep tabs on who is selling what to whom without a scorecard. Etcetera.