Looks like a used UTM round. I have used them in pistol training courses to simulate actual combat. They make them for 556 rifles as well, as you can deduce from the one you found at the range. They fire a very small paint ball, and you know it when you get hit. The firearms require modification to be used with those rounds, as they won't have enough gas to operate the action on an AR-15. The back blows out rearward in a telescoping motion to give the bolts/slides enough momentum to cycle the action. The converted firearms cannot chamber normal lethal ammo as well so it is a safety thing also. You can read about them here;
https://utmworldwide.com/product-category/shooting-enthusiast/conversions/
Edit; the converted AR-15 will still chamber normal ammo, but will not fire it. The normal 9mm pistol ammo will not chamber at all in a converted firearm.