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Makes sense, thanks for all the help!
Turns out this was my problem: If I blit the ARCameraBackground.material to the RenderTexture in the same method as I ReadPixels() and Apply() to...
Your example definitely works... I'll try and figure out the differences and post what I was doing wrong here.
I haven't overridden the ARCameraBackground's material with a custom material. By "Unity Objects in it", I mean 3D virtual objects from my scene...
Trying to do the same, and used your method tdmowrer, but looks like the ARCameraBackground's material has Unity objects in it.