"Simulation" doesn't necessarily entail stimulating interactivity and a pleasing aesthetic. As of writing, I don't know if there's a better term than "game" for what this is. (Maybe we can coin a new term, like "game-lite" -- somewhat akin to what "rogue-lite" is to the "rogue" genre).

See "walking simulators":

https://en.wikipedia.org/wiki/What_Remains_of_Edith_Finch

https://en.wikipedia.org/wiki/The_Stanley_Parable

https://en.wikipedia.org/wiki/Thirty_Flights_of_Loving

Plenty argue that these aren't games either (usual complaints involve lack of problem(s) to resolve, and no win-lose dynamic); but, then, what are these? The closest category I can think of would be "computer-animated film", but... these are interactive, and you can navigate and look in any direction you want, which yields a very different experience than watching a film like "Toy Story".