Are we still in agreement that your hypothetical simulation must have nothing to do with real external reality?
No, not at all. That is your contention alone, and it has no basis in actual logic.
The only requirement is that an intelligence limited to the simulation does not have access to information that would enable to completely determine if it was limited to the simulation.
The simulation itself might have very much to do with external reality. For example, any simulation we run within our own frame is done on hardware in our frame, and so the simulation is at least limited to what our hardware is capable of simulating. And if there is a bug or a glitch, any inhabitants of the simulation would notice it.
But they would not be able to determine with 100% confidence that the happening was due to them being in a simulation.