They can simulate "driving out of a raging fire" but not a flooded street? This seems like an admission that the fancy "world model simulation" doesn't actually mean much
https://waymo.com/blog/2026/02/the-waymo-world-model-a-new-f...
https://waymo.com/blog/2026/02/the-waymo-world-model-a-new-f...
My guess is they did have flooded street sims but the correlation was much lower than expected, or the details of the situation being simulated (lighting, building locations, how dirty the water is, ...) were sufficiently different from the situation that was encountered that the sim based training didn't generalize to the new context.