I think the way people think about "simulation" is tainted by The Matrix and computers.

What does simulation mean? It's an imitation. What is there to be imitated? Concluding "this world isn't real" doesn't need to imply there is something else real, somewhere else. We can observe field of potentiality and existing "inside" of something without giving reality to an unknowable outer layer. If you view yourself as a person, sure- simulation. The body is a vessel- identification with it is the same as watching a character on a screen.

Why would any concept at the level of illusion be anything more than illusion? Rather, the act experiencing through awareness is directly provable with no extras.

Nobody has the authority to tell me that I did not observe this sentence being written- it doesn't matter if "I" am real or not. There is no need for you to ponder whether I am real or not- you can only prove that this sentence is being read if you are aware to read it. "Others" may be filled in to support some aspect of your reality concept- there is no proof of their reality beyond the experience of observing them.

Ultimately, it is up to each point of awareness to consider the bundle of ideas they will entangle and disentangle from once they form a concept of self. In the same way everything can be reduced to a simple duality (1s and 0s, "me" and "not me"), awareness stripped of its name and form is identical- one.

Did history happen, or did it spring into existence step-by-step as needed to support the larger narrative you formed from birth? The implication is to drill down and realize what needs no proof- observing the concept of deep, dreamless sleep is one place to look. Consider what you are, and you may find that it is irrelevant what any of "this" is.

I have observed that simulation theory leads individuals to "reject" the presented reality and grab onto something else. Is there a need? Once the theory plays its role, reject it also.