<p>To create an environment means thinking about, or rethinking, its structure so as to make it as inclusive as possible for individuals who use it. Recent advances in extended reality (XR) technologies have shown tremendous promise in this respect. Blended environments, those that include physical and digital elements, are especially promising because they allow developers and users to co-create social spaces that empower users to represent themselves and others with an eye toward inclusivity. This is a paper about how not to create such spaces. I will argue that the psychology of XR, especially the psychology of XR embodiment, should help us understand the limits of these technologies for enabling environments. First I will explain what XR technologies and how they enable a form of embodiment, XR embodiment. I’ll then explain the psychology of XR embodiment. XR embodiment should be taken seriously as a new possibility for the creation of selves but it has limitations. Virtual reality (VR) is often praised for its power to enhance empathy and thus to be a powerful tool for enabling environments. I argue that these claims are mistaken. While XR embodiment can be a transformative tool for identity formation, it cannot enhance empathic understanding of others. I then explore the social and legal implications of XR embodiment. If XR bodies are rightfully a component of a person’s self then if we want to create more inclusive and enabling environments we need to revisit the legal and social norms around bodies. Current laws (e.g., sexual harassment law) fail to take XR embodiment into account and thus fail to enable inclusive environments. I end the paper by suggesting that XR embodiment poses fundamental metaphysical questions about the relationship of the self to the physical body. These questions need to be addressed before enabling environments are possible.</p>