Is enlightenment the understanding that occurs when you see the world is a simulation?

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No.

Enlightenment is full acceptance of the world for what it is. It is not escaping reality, it’s accepting reality, fully.

“The world is an illusion/simulation” talk happens at the very early stages of the journey, when it is seen/apprehended/intuited that the world as you’re seeing it right now is not, on some level, real. It’s not an indication that the physical world isn’t real, it’s an indication that your mental construct of the world isn’t real, and people confuse the two.

There is a reality under what one could feel is “a simulation”, but this “simulation” is not really a simulation - it’s just a sum total of illusions and beliefs. So, this “simulation” happens in your own mind, if you wish. Strip yourself from all your beliefs and you will break free from the simulation of your own making.