Both, sort of.
Last night, i dreamed about a new AR/VR ride at a local theme park. It was like a giant crane shaped building, but it wasnt a metal structure, it was like a skyscraper with a structure built horiOntally at the top with a glass ball at the end with a bunch of chairs inside and a laser gun sticking out from it. You got in as a group and shot as flying alien ships, and it moved around like the gun pods in Star Wars. There was another building next to it that housed a VR game. Both buildings were wonky/leaning over and wouldn't be able to stand up without some supports (or being a dream)
In the case of the AR shooting thing i was both some distance away, looking at the towers whilst also being inside the ball doing some shooting amd sometimes watchk g from some floating point outside of the ball with me and my family in the ball.
The VR thing was odd. You were in a medium-sized room with a table and some couches and an open space in the middle. You had a laser gun thing, but it wasn't really a gun. You had to shoot these little shadow things that came towards you. Some were shaped like teddy bears, and some were shaped lake ants. They both made a weird creaking/squeaky noise as they moved so you knew where to look. Eventually, when you kill enough, a big dragon comes down, and you have to dodge its fire breath whilst shooting it. Beat it, and you win.
My wife went first, and you could see what she saw on a tv screen. I both watched her on the screen and also saw from her perspective. I k ow i watched on the screen because i remember when another person had a go. i was telling their friends they could watch on the screen. And then when i had my go, i remember thinking I've done this before, but i was my wife.
Dreams are weird.