Simulation in abstract implies to imitate something. Further abstracted to a system of rules removes the reference and it become equivalent to a lot of concepts. It is true that the meaning evolved, but that is probably just an effect because we try to understand reality. And creating a simulation is the test for that understanding. That in best cases fit perceived reality if developed to that goal.

A simulation does not have to model reality and multiple simulations trivially exist. But I don't see why that would imply anything for reality as well from that.