Augmented reality (AR) enables the illusion of computer-generated virtual objects and humans co-existing with us in the real world. Virtual humans (VHs) in AR can further induce an illusion of physicality in the real world due to their form of presentation and their behavior, such as showing awareness of their surroundings. However, certain behaviors can cause a conflict that breaks this illusion, for example, when we see a VH passing through a physical object. In this paper we describe a human-subject study that we performed to test the hypothesis that participants experience higher copresence in conflict-free circumstances, and we investigate the magnitude of this effect and behavioral manifestations. Participants perceived a social situa...