I would assume most simulations would be more academic/business related, like how we have tools that simulate a wind tunnel, rather than for entertainment purposes

The entities running the simulation knew you would think like that, which is why they put Elon Musk there so the simulated you thinks "nah, if I were simulated my life would be awesome".

I had the exact opposite take, that him talking about that is (further) evidence he's a bit off his rocker. Not that being off his rocker is necessarily a problem. In fact, it might be the only reason he's doing interesting stuff with his wealth instead of just trying to turn it into more wealth for the sake of a high score.

But I'm not Elon Musk, and I'm not super rich and successful, so therefore I am real and he is as well and not a simulation. I don't know what things are like your simulation, however.

His mistake in his assumption is all games are the same. Sometimes I play a game that is kind of 'boring' and relaxing like a bit of solitaire. Other times I play a fragfest with 15 other people looking to take my head off. Sometimes I intend to play something exciting and end up playing max/min stats. Sometimes I just suck at the game...