"Augmented virtuality (AV), is a subcategory of mixed reality which refers to the merging of real world objects into virtual worlds.[15]
As an intermediate case in the virtuality continuum, it refers to predominantly virtual spaces, where physical elements, e.g. physical objects or people, are dynamically integrated into, and can interact with, the virtual world in real time. This integration is achieved with the use of various techniques. Often streaming video from physical spaces (e.g., via webcam)[16] or using 3-dimensional digitalisation of physical objects.[17]"
When I heard the word "mixed reality" for the first time two years ago, the idea was that AR was a 2d layer on top of reality (like google glasses) and that MR was actual 3d objects merged in the reality.
But then, mobile apps started doing the later and called it AR. Also, Hololens did what we were calling MR and called it AR as well. So at this point, I guess you can use whatever word you prefer.