The Elder Scrolls 3: Morrowind is 20 years old, and to celebrate that, multiplayer Morrowind tool TES3MP has been updated to merge it with OpenMW VR (opens in new tab) (which you can see in action minus the multiplayer above), meaning that, yes, now you can play Morrowind with your friends in VR. Even if you don't have a VR headset yourself, you can join players who do on the same server.
While playing in VR means you can see the position of your hands—which are personalized to suit your species, if you'd rather have fuzzy khajiit hands, for instance—other players won't be able to. No waving hello or giving anyone the finger, sadly.
The open-source Morrowind engine OpenMW (opens in new tab) had its first public release in 2008, replacing Morrowind's Gamebryo engine with something more robust and alterable that modders and tweakers would be able to build on. The OpenMW fork TES3MP (opens in new tab) is the perfect example of that, making multiplayer Morrowind playable since 2017. Another fork resulted in OpenMW VR a couple of years ago, and now the two have been combined as of TES3MP version 0.8.1.
To play Morrowind multiplayer in VR you'll need to have the original game, of course—while OpenMW replaces the engine, it still uses the original assets—and then follow this quickstart guide to TES3MP (opens in new tab). You'll want to download TES3MP VR 0.8.1 (opens in new tab) to play in VR, or TES3MP 0.8.1 (opens in new tab) for the non-VR version, which whoever is hosting a server will also need.