First, note that Elon Musk, the CEO of Tesla, is one of the drivers of this which he meant as a joke but he's also a nut job of a conspiracy theorist, which doesn't actually take anything away from the fact he's also a business genius. You can be nuts and very successful, but these aren't the people you want to listen to for philosophy as their main philosophy is, what's good for me is good for, well, me. But it's not a dumb question. This kind of thing comes up a fair amount just on this website. Here's the thing about thinking: it's what makes humans human. It's what makes us incredibly creative. It's what makes us nuts. Unlike other species, humans have this cerebrum that formed that allows us to overrule instinct and act on thought or impulse in ways that can make life a lot more interesting or a lot more troublesome. It all depends on how you regard your thoughts and the nature of those thoughts. Every human thinks. It's what we are. So we are able to make up a story about life that isn't factually true. In that sense, yes, life is a simulation or a dream or whatever you want to call it because people created it, not nature. But we are also a part of nature, and so it is part of nature too. Societies and religions and civilizations and philosophies are all made up by people. That's why there are so many of them. You can look at that as enriching or you can look at it as chaotic or however you want to look at it. But if you let those thoughts drive you nuts or obsess over it instead of just analyzing it and reasoning from it and joining in on the fun of participating in our imaginative creation of our lives it can make life very hard. Depression and anxiety are obsessive ways of thinking that are counterproductive and just plain no fun. It's an illness. Thinking isn't an illness. Realizing the incredible diversity of how societies are organized kind of says people are just making this stuff up and persuading others but that doesn't have to make you unhappy or frightened. It can be grist for your own acts of creation. So the question is, do your ideas test out or not and are they serving your life or making it very hard to live. If the latter, therapy might help you do it in a way that doesn't bother you so much. Now, are people real? Is anything real? Who knows? But it really doesn't matter because we're alive and living it whether it's a simulation or not, so we have no choice but to make the best of it and enjoy it. Again, your thinking isn't the problem, it's what intelligent people do. It's only a problem that it seems to be a problem for you. Peace.
Ah man, the mind is beautiful and a trap at the same time, isn't it? We can go places and ponder things in our mind that is awesome. Interesting. Deep. But then, it can just be a trap in which we get thoughts stuck in our head that torture us or just bug us. You might be in the tap area with this thought. My son who has anxiety will start thinking about something and his whole day becomes about that life mystery and if it is negative (he's into thinking about how we are all the same, no one is really unique, there are probably 20,000 males just like him doing the exact same thing around the world so he doesn't matter an dis not special . . . yes, he thinks about that until he feels like he's nobody and depressed when I can't really understand the obsessing over these thoughts. It's his age and what he does. you sound in the same boat! Do you have trouble sleeping? That's common with this wandering mind thing too, I've noticed. My son does better if he is busy, if he has a goal list of things he wants to accomplish every day and he is working on the anxiety disorder.