An interesting question is, how can you simulate consciousness? How can you give a simulated virtual reality character free will? Now if we are virtual reality does that mean it is possible to create Artificial Life with consciousness and free will? Will Artificial Intelligence (A.I.) have free will and consciousness by our design? Probably not in both cases. Take one of our space probes that lands and roves around and explores the surface of a distant planet. That space probe cannot rely on instructions from say NASA's Command Centre back on Earth due to the time lag in communications. The space probe has to make its own decisions in an emergency; when crunch comes crunch. But does the space probe - with limited A.I. - really have free will? No. It has been pre-programmed to do A, B or C whenever X, Y or Z arises. Even if it could be done - not a given - the last thing we'd probably want to do is give A.I. free will and the keys to the city - just saying. Better to be safe than sorry.
You probably wouldn't want to create a video / computer game where the characters had free will / consciousness as that would spoil the fun of playing the game. The point is that you are in control, not your simulated characters.
So in the Simulation Hypothesis, your apparent consciousness is just programming and of course you have no free will. You can program a computer to display "I think, therefore I am", but the computer doesn't really have consciousness nor free will.