Seems like a form of virtual eugenics, a sensorship or the body in a way that's oppressively homogenizing. I feel like this is part of why zuck leverages cartoons to market metaverse for corporate settings, or why all the retail-safe anodyne pop muzak is full or autotune and flawless software-based overproduction. Not to be overly dramatic but imagine you are enraged but all anyone can see is a tranquil smile and your words replaced by positive endorsement; you have no mouth and you must scream

On the plus side I can see this being used to self-anonymize by individuals who want to protect themselves from facial recognition or other forms of id from undesirable parties, but that's more of a coping tactic for a society that fails to incorporate any honest ethical QC into product development to begin with.

Current example would be the filters that modify appearance that's used a ton on influencer platforms. We've been photo shopping for years but now anyone can create a false identity online. The bad side of this is like catphishing and unrealistic body standards causing non obvious mental health issues across generations.

Future would be continuing to push the boundaries of auto formatting filtering styles based on your preference or the populations preference. Scamming, impersonation, money to be made from gullible people.

This is just the surface. I'm sure there are tons of fictional books exploring this or people with more destructive ideas.

Just because I'm terrified and am listing the bad, that doesn't mean I don't recognize the good that can come from it. I'm not sure if that out weighs the bad yet.