@NoobsDeSroobs The white highlight is just a result of your transfer function - the values inside the cloud map directly to white. You can try to use more complex transfer functions (which map an intensity value of a voxel to a color+transparency which is then used for blending) to get rid of the bright white and get more details in those areas.
If you want a more ‘natural’ look of the cutting interface, consider shading it using the normal of your cutting plane:
In your raycast loop, check if the first sample is already opaque (above some transparency threshold). If so, use the color and the normal of your cutting plane (or the one from the bounding box) to emply a simple shading (i.e. phong) to make it look more like a cut surface.
Other than that, nice results, what framerates do you get in VR? And would you be willing to share your project somewhere (nevermind if its not in a nice state, just looking for some pointers on how to achieve certain things)?