I watched the Musk video when it came out and was naturally sent into a ball of confusion, like everyone else. In trying to grasp this idea, I think of the way our world functions today. Everything in it and all the man-made systems are designed by a handful of people, not the majority of people. The way a subdivision is created is made by a few developers. I believe that scarcity is designed into our reality on purpose: to keep humans enslaved so that they are forced to transfer their energy and wealth to the gatekeepers.
Let's look at a subdivision. Food forests are not designed into the areas surrounding the homes. They are instead designed without any thought to nature, except superficial grass and "nice" shrubs. If those grasses and shrubs were instead filled with blackberry bushes, and walnut trees, you'd have an abundance-filled area. This is just one example. Another example is how we have been conditioned to think about what we deserve.
We all buy into the cult of personality regarding Musk. We discount the fact that he makes insane demands on others and frequently abuses people close to him. His personal assistant of many years, who was loyal to him was cast off in one of Musk's absurd tirades. These shortcomings of a man who has achieved cult status are routinely ignored.
I would say that Musk's assessment is correct in that we are in a simulation, but I would assert that we are in a simulation of a few narrow minds of a past time. Many of the great leaders of the freedom movements were killed off before their missions could be accomplished. We're in a simulation of past murdered saints whose mission could not be fulfilled.
I think Musk could be correct in his assessment regarding the future. There are already two kinds of people on earth: the debt slaves and the owners. If this is ever to get balanced out, people are going to need to undergo massive mind deprogramming to make them aware that they do not exist in a world of their own choosing, but instead, they are merely cogs in a wheel of a past paradigm, one that was not created to enhance their human qualities.
Most people have been reduced to thinking of themselves in terms of productivity and machine-like functions. "Get a job" "Don't be lazy" "Be productive". Well, humans were not built to be productive for a set 8 hours at a time, every day, like a machine. That's for machines. The human mind works more like a bubbling pot of ideas, impulses, thoughts and actions. It gets energy from sharing ideas, so working in isolation in a cubicle is not ideal for the growth of a mind. Sure, some like to work alone, but most don't.
The idea of a corporation with a hierarchy and a limited set of actions one can do throughout a day is a simulation of a bad idea. It also goes against nature and natural laws of free movement and energy transmission. Energy within a human is just as valid as energy within an object. Movement is constant and necessary, it's just normal.