I have written motion control firmwares for 20+ years, and "this is real time simulation" has very domain-specific meaning to me. "Real time" means the code is responding to events as they happen, like with interrupts, and not via preemptible processing which could get out of sync with events. "simulation" is used by most control systems from simple PID loops to advanced balancing and motion planning.

It is clearly - to me at least - doing both of those things.

I think you're reading things into what he said that aren't there.