auggie
A man gets pressured into early retirement and becomes kind of depressed, so he starts using these special glasses that project an augmented reality companion for you.
Let me answer your first question: yes, he has sex with it.
I mean, that's what happened with that movie called Her from a few years back. I watched it, hoping the whole time that I wouldn't be subjected to the bawdy spectacle of a man having phone sex with Amazon's Alexa. But that's what happened and it made the whole movie weird.
Same thing here.
Up until the moment the attractive AR companion, Auggie, suggests her flesh-and-blood master purchase a set of "sensory trousers," one wouldn't be blamed for thinking this was on track to be a cute, feel-good movie, like Lars and the Real Girl. But it's not. The sex pants come out, and in the meantime, the guy's wife contemplates cheating on him--with an actual person. (She backs out at the last moment.)
Despite everything, there is a moment when it appears the movie will end on a happy note. His marriage on the rocks due to his growing infatuation with Auggie, the fat guy goes to the beach to do some soul-searching. When he next puts on the glasses, the person projected for him is his wife--because the glasses read your brainwaves and project the person you most desire! For about half a second, you can almost imagine that Rupert Holmes's "Piña Colada Song" is about to play in the background; that man and wife are going to fly into a vigorous embrace, their renewed passion wiping decades from their careworn faces.
No.
The glasses switch back to Auggie almost immediately, and then a twist happens that makes things really bad, and then the movie ends ambiguously, forcing you to imagine what happens to the man and his glasses.
Bottom line: Could have been cute, but instead turned creepy and depressing.
Watch again? Nah.