Cadet Noah discovered them when he walked in on what appeared to be Maximus and Betty playing and laughing. It was soon revealed that they were Bangoons, X-5 explained that he invented them. Noah used one to change into Sparky, Admiral DeGill and Iciclia. Noah decided to pull a prank on Betty. Betty walked in while the mask was in the form of Iciclia and she attacked Noah. He revealed himself and confirmed the masks worked before he passed out. (Crash Test Noah: Unmasked)
It would appear that the virtual face mask is merely a part of a whole virtual suit. When the Bangoons were disguised as Maximus and Betty, they appeared in their whole bodies and when they took their mask off, they were still wearing Maximus and Betty's bodies. Also, when Noah took a face mask and assumed different forms, such as Iciclia, it merely appeared to be her head on Noah's body.