As an avid gamer, I'd argue the actual physical threat of being hit is hardwired into us because it is tied to our survival instinct on a primal level.
I like to do all kinds of silly stressful challenge runs in games or sweaty PvP and to your point I've actually noticed that I actually perform better in games like Elden Ring with the music off because the music is designed to heighten your stress.
That all said, I can assure you that none of that comes remotely close to the visceral fear you experience when someone bigger, stronger, faster and better is walking you down in the ring. But overcoming that internal struggle - that is where the true growth lies.
That all said I actually train in a gym that is highly respectful, we train technically and we don't spar to hurt. The desired intensity is mutually communicated and the coaches are at hand to keep us in check. A "fun" way to dial up the intensity is to do heavy body sparring because it's generally pretty harmless but gives you a taste of throwing and receiving power shots (it is exhausting).
A gym with this culture is a fantastic environment for people to develop and I would encourage people to give it a try, no amount of audio-visual simulation will be a replacement for the tactile sensation of being hit and the associated anticipation that accompanies the experience. Our machinery is still animal and we originate from the physical world after all...