step above - he only realizes the inner world is AI-sim, not that the world outside is itself an AI-sim.
Yes - the movie is completely senseless beyond:
The acute audience member being rewarded with existential dread,
as the viewer recognizes that the movie they had just seen had placated their anxiety about AI taking over humanity by displaying how AI will be subverted by human (pick your virtue) adaptiveness / perseverance / persistence, deep breath
which in-and-of-itself is
the AI giving you everything you ever wanted: constant distraction, memorable characters, challenges and obstacles to overcome, exciting stakes that matter, and a satisfying ending.
senseless.
Make no mistake, AI’s gonna try to give you everything you ever >wanted: constant distraction, memorable characters, challenges >and obstacles to overcome, exciting stakes that matter, and a >satisfying ending.
But in the end, it will all be a lie.
And you’ll live in a cage.
Good luck.
Have fun.
Don’t die.
perhaps this will bring closure: https://en.wikipedia.org/wiki/Good_Luck%2C_Have_Fun%2C_Don't_Die - see the production section.