In the original story, Liam managed to use the VR space to gain numerous benefits, but in doing so, he almost exposed himself.
Inside the VR space, although it restricts your physical and cultivation strength, you can retain the ability you've practiced, along with any racial abilities, as they are directly connected to your consciousness—in short, your soul.
Liam discovered this after losing many battles in the VR battle arena. Realizing he could use some of his racial abilities without suffering any backlash, he began to utilize them inside the VR space nonstop. This allowed him to get accustomed to his racial abilities much faster.
However, this constant use of his abilities made Liam so famous that everyone could recognize his VR character at a glance.