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I think it depends on the amount of information you shove into a users eyes.

The body balances by using the contours of objects seen through the eyes mixed with sensory input of the balancing nerve and touch.

So to much overlay might make you sick as well I think.

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Sounds like a failed UI for AR.

If you cover up things, not work together with the real word view (including moving, adapting to how the user move the head and match the balance input), you basically would have crappy VR.

I totally agree, though I think it would be interesting to measure/study the amount of interference from an overlay needed to cause sickness. Imagine you have a simplified model which shows the countour of perspective lines and significant objects of a scene, how many of these lines can then be interrupted, overlayed or rerouted before you introduce too much noise in the visual perception and get sick. It would differ from person to person, but I'm pretty sure it's some kind of normal distribution. I don't think there's been many public studies trying to quantify this.

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