In other words, the universe simulating ours might work completely differently, and some beings there are just testing how different laws of physics (i.e. ours) work out.

imitation of a situation or process. "simulation of blood flowing through arteries and veins"

I love the game of life but I don't really consider it a simulation, it's a toy that with the right parameters could simulate something.

Or there is a practical use like energy extraction. Or they live (if that even applies) in a universe that generates what our closest concepts of are e.g. time and energy, and they have to spend them massively in simulations to survive. Or their laws of nature tend to overcommunicate (dilute) them into a single being, so they simulate everything we see for islands of “themselves” to remain distinct. They split themselves endlessly with perception because that’s the trick in their situation.

One of my nightmares is to wake up from this and realize you woken up from a mild depression into a horror of a true existence, and this isn’t even a final level. Makes sense, since if god is infinite, why shouldn’t he be infinitely suffering. Why would he (you) create all this if not to escape from null-reality.