XR is short for the umbrella term "eXtended Reality", though I suspect (without proof) the latter started as a backronym, with the X perhaps originally meaning the traditional placeholder "whatever" for "Augmented", "Virtual", "Mixed" etc, which "Extended Reality" encompasses.
Many will say otherwise but the most accurate answer is that it’s short for “Xtreme Reality” - for example, if you look at a car, it will add flames to the side. Look at your dad - bleached blonde tips. Stuff like that.
Eg.
https://en.wikipedia.org/wiki/Extended_reality