Your character mumbo jumbo aside, I agree simulation theory could be true but the same as the proposed Äther carrying the electromagnetic field, it is not possible to be proven wrong so it is ultimately useless.

I don’t agree that our consciousness can choose what to do. I think it’s just an illusion. In that sense your proposal that we steer our experiences by ourself through choosing with which systems to interact, in my opinion, is false. Even if you assume the brain in a vat setup, assuming quantum physics holds in the “real” universe, we just end up with one huge system government by a very complicated wave function