the angle is subtented at the eye by an object is equal to the angle subtended at the eye by the eye virtual image produced by a magnifying glass. In what sense then does magnifying glass produce angular magnification?

Even though the absolute image size is bigger than object size, the angular size of the image is equal to the angular size of the object. When magnifier is not used, the object would be placed no closer than 25 cm; and when magnifier is used, the object can be placed much closer. The closer object has larger angular size than the same object at 25 cm. It is in this sense that angular magnification is achieved.