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The study examines the engagement and affective experiences of multilingual learners in informal language learning using AI-embedded virtual reality (VR). Twenty-one adult English language learners engaged in self-directed activities over four weeks, with optional weekly virtual conversational circles (CC). Data were collected through surveys measuring language anxiety, cognitive load, agency, and weekly activity logs, along with semi-structured interviews with participants and CC facilitators. Preliminary results indicate that language anxiety significantly decreased over time, with CC participants reporting higher overall anxiety and engaging more in AI-enhanced pronunciation and vocabulary activities. Findings provide insights into how VR and AI can support informal language learning by promoting low-anxiety, cognitively manageable experiences. Implications for designing AI-embedded VR platforms and instructional strategies will be discussed.