Being self aware of myself and my surroundings but not aware of the entire world does not make me not self aware. Same as an entity in a simulation could potentially be self aware but not aware of being in a simulation.

Let’s take this to it’s full conclusion to see why this is not a meaningful distinction. I am not even aware of every cell in my own body, you don’t even need to make reference to the outside world to argue we are not self aware. This line of reasoning makes self-awareness a rather meaningless word.

And stating why I think the simulation hypothesis is not adequate is not the same as disregarding, even if I didn’t fully explain the reasons.