I was thinking of the early demonstrations they had, where the lighting and occlusion just didn't seem plausible (e.g. the infamous whale demo https://youtu.be/LM0T6hLH15k?t=30). These early demos were called out by skeptics as being not plausible (https://www.theregister.com/2016/12/09/magic_leap_neither_ma... or https://www.theinformation.com/articles/the-reality-behind-m...)
Is AR possible, sure, but it has restrictions and when Magic Leap's product hit the market those restrictions were obvious.