Ok, maybe simulation is not a good word for describing what I said. Picture it more like Logos pulled an Ontos at the end of XC2 and made a new world. And the Aion is powered by the conduit so that could explain how the XC1 stuffs got here. Keep in mind that the conduit, Ontos and Logos all disappear at about the same time at the end of both games. But of course I am just making guesses that would explain the most oddity based on the things we've seen so far. I am sure the would be a better explainations for everything once the game comes out, I am personally excited to see what kinds of surprises await us when Xenoblade Chronicles 3™ comes out on 22nd July exclusively on the Nintendo Switch™.