I mean, not really? The majority of the screens are extending backgrounds amid predominantly practical sets and animatronics. The major characters that aren’t practical (primarily the Bowser finale) logically make sense as projections/screens because 1) it ensures the character will never go down or be inoperable, and 2) likely aligns with Nintendo’s desire to interact with these characters through screens because that’s how people have ALWAYS interacted with them.
The AR aspect is not the same as passively watching screens, regardless of how many fans want to categorize them as such.