Let's assume for sake of discussion that there really is a human species existing on a really real Planet Earth in a really real reality - The Universe or The Cosmos. Now these humans are intelligent and curious and rational (?) and creative and love to invent and use technology (especially information technologies or I.T.). Sooner or later they create I.T. and then lots of I.T. and then lots and lots more I.T. the power of which grows exponentially keeping with Moore's Law. Part of this I.T. is creating software-programmed computer-generated simulations for research, for training and for entertainment purposes. Sooner or later their I.T. is so sophisticated they can simulate historical scenarios complete with the required historical beings with at least apparent consciousness and apparent free will (though many argue that the emphasis should be placed on the word "apparent"). Eventually there will be dozens, and then hundreds and then thousands and hundreds of thousands of these historical ancestor / historical simulations, each generation of editions new and improved over the previous editions. That's called progress! So, what are the odds you are a really real human existing on a really real Planet Earth in a really real reality - The Universe or The Cosmos - and not a software-programmed computer-generated virtual reality human in any one of the multi-thousands of simulated virtual realities?
Historical ancestor simulations aren't unrealistic or unheard of. Think of all the humans around the world today who dress up in authentic historical costumes and participate in recreations of historical events from American Civil War battles to Bounty Day on tiny Norfolk Island. Humans love their history and are especially interested in their genealogies (family trees). So once the I.T. is available, ancestor and historical simulations will flood the market.
You might also recall the films "Westworld" and "Futureworld". And who wouldn't love to participate in a recreation of the Gunfight at the O.K. Corral or participate in a medieval knightly joust or participate in a dialogue with Plato? Then there is Star Trek, albeit a fictional show featuring lots of techno-babble. Well, with the Star Trek holodeck, all simulations are possible. There's very little different in principle between that scenario and your sophisticated ancestor simulation video 'game'.
The essential point to remember is that all I.T. simulations will be designed and fine-tuned to do the job they were designed to do - with purpose and meaning.