It doesn't match all the points, and it's very recent (2020), but Darwin's Game has the protagonist, Kaname Sudō, trapped in a game copy of the modern world where each of the players has a special power unlocked by their "Sigil."
Actually it's not entirely clear if the game is a true virtual reality or merely an augmented reality, since sometimes the players use their phones to view game elements, which suggests AR, but when they fight their sigils allow them to do things they couldn't do in reality, which suggests VR. And there's apparently some leakage to the real world where some in-game effects show up in reality, so how the game works isn't very clear.
Kaname is linked into the game by a friend of his who asks for help, but dies anyway. Kaname joins the game and is dumped into a timed deathmatch where he has to fight another player to stay alive and win points. Kaname's sigil allows him to replicate any object he has previously held in his hand, which is handy when he needs a gun or a knife in a fight.
Kaname also decides that he doesn't want to kill, and forms the Sunset Raven clan to oppose the vicious Eighth clan and to try to find a more peaceful way to survive in the game.
Different from your question is that the Sunset Ravens are a "clan," not a "guild."