"Simulated" doesn't explicitly mean "in a computer" by default. A "simulated test environment" can also mean "a robot in a physical field simulating a war". The choice of language is deeply misleading.
Hell, the wikipedia on "Military Simulation" [1] is very clear that there's a very broad gradient under the section "The simulation spectrum", saying:
The term military simulation can cover a wide spectrum of activities, ranging from full-scale field-exercises,[2] to abstract computerized models that can proceed with little or no human involvement—such as the RAND Strategy Assessment Center (RSAC).
The first example described is literally in physical space, where computers wouldn't even necessarily be involved!
Military exercises focus on the simulation of real, full-scale military operations in controlled hostile conditions in attempts to reproduce war time decisions and activities for training purposes or to analyze the outcome of possible war time decisions.
[1]
https://en.wikipedia.org/wiki/Military_simulation
[2]
https://en.wikipedia.org/wiki/Military_exercise