Well it's not like they're looking at their actual faces, they're looking at an in-game avatar that's often highly sexualized or otherwise very pretty

I mean, in VR you're really just checking how well you did your avatar. There's a sense of accomplishment in doing something that looks like you with a very limited set of tools. Haven't tried it in VR, but I know the exact feeling from The Sims series.

Theres no other feedback of your own avatar except for viewing it, if i am trying to immerse my self i wanna make sure i dont look jacked up.

Source: me, i play.

I think it's also to do with how photogenic someone is. I'm the same as you, my photos/videos/voice always feel weird and awkward to me. The other day I came across this relatable story:

My mother is gorgeous. Stunning, even. She was homecoming queen in high school and has the smile of a true crime cliché (that is to say, it lights up a room). Blonde, razor-cut bangs frame her big, brown eyes – rimmed in her signature liquid liner, always – which literally twinkle when she laughs.

There is no photographic evidence of this.

I cannot make sense of it, but something happens to this dear, beautiful woman whenever a camera comes near. Her face contorts at the click of a shutter. A combination of the following features appears in every picture she’s ever taken: squeezed-shut lids. Crossed eye. Eyebrow askance. Elvis lip. Cowlick. I sometimes insist a particular picture isn’t as bad as she thinks; I’m lying. Her driver’s license photo? Horrendous. Her Facebook profile picture? A close-up of the family dog.

I take comfort in this whenever I come across a less-than-flattering image of myself. Photos do not reflect reality, I think. Just look at all the terrible pictures of Mom!

When you’re Nanachi, you enjoy looking in the mirror.

A good 200 of them are pissed right now.