Not necessarily what you are looking for, but there are two books (Daemon and Freedom (tm) ) which revolve about the story of a society based on AR. Not really litRPGs, though, more like utopian science fiction. https://www.goodreads.com/book/show/6665847-daemon?from_search=true
Oh Meta... I remember geeking out about the MetaPro Space Glasses way back in 2014 or so. A colleague of mine ordered a pair of those glasses and they never arrived because Meta was apparently onto these spectacles.
The second and later Dream Park novels used augmented reality, along with robotics and other special effects. The first one did it all with holography, but by the time they started the second book the authors realized that likely would never be advanced enough for the purpose. Everything in the series is about gamers playing in the real world but I'd say it counts as LitRPG. They're each playing distinct characters who have abilities the players do not possess, which are monitored and assessed by the Game Masters and the various computers they use to run the game and present the opposition.
TM is Alt+0153 if anyone's bored. Soon™ I've toyed with writing a story using a lot of AR, but the concept seems clunky whenever I read other people doing it.
I'd love bringing in the crowds who have no idea what's going on. To me, the concept seems more like a comedy than a serious novel setup.
The comedy bits definitely seem to write themselves at times. There are quite a few scenes of layman observing one man sword fights, etc. You quickly get used to the clunkiness, I feel. You just have to embrace the clunkiness.
A story about a dude wearing a google glass looking thing and seeing monsters and the random people he passes all think hes crazy would be great
I haven't had time to watched it yet, but I hear the Sword Art Online Movie - Ordinal Scale uses AR instead of the Full Dive VR.
There’s another anime about AR battling, but I can’t remember the name of it off the top of my head. Oh, google reminded me. It’s Accel World.
Here's mine - 33k in, churning out 10k a week lately. Well need some editing and polishing before I throw it up on the kindle store. Be gentle, its my first time. https://royalroadl.com/fiction/16103/steam-whistle-alley-an-adventure-in-augmented